Silver Price Forecast – Silver markets fail to hang onto early gains

Silver markets tried to rally to kick off the session on Monday but gave up the gains as we approach the $14.50 level. This is essentially fair value in the overall consolidation area that I have marked on the chart between the $14 level on the bottom and the $15 level on the top. Beyond that, we also have the 50 day EMA at that level as well, and it is starting to slope lower again. If that’s the case, then I think the sellers are going to start to get a little bit more aggressive.

SILVER Video 27.11.18

Selling rallies in the silver market should continue to work, at least until we break above the $15 handle. The markets do favor the downside overall and when you look at the longer-term charts, there is a 20 year trend line that was recently broke down. Because of this, I think that we have a very strong bearish sentiment in this market still, even though I like the Silver markets longer-term. If we can break down below the $14 level, then the market could go to the $12 level which was even more supportive. Currently, the only silver I am buying is in its physical form, because if you take the leverage out of it Silver can be held onto for quite some time.

In the meantime though, look for signs of exhaustion on short-term rallies as I think we are almost going to have to go down to the $14 handle.