Silver Price Forecast – Silver markets finally showing signs of exhaustion

Silver markets pulled back during trading on Thursday, as we have finally shown signs of exhaustion at the $16.50 level. This is an area that of course will attract a bit of attention as the market tends to be attracted to $0.25 increments, so at this point it makes sense that we would see some type of pullback, because quite frankly you can’t go in the same direction forever. At this point, the $16.00 level underneath should be support, as we have recently broken out above there. At this point, this is a market that is extraordinarily bullish but we are overdone.

SILVER Video 26.07.19

Looking at this chart, I think that if we drop down to the $16.25 level, or perhaps and even better, the $16.00 level as it is a large, round, psychologically significant figure. That will attract a lot of attention obviously, so I think at this point it’s only a matter time before buyers would step in there.

Keep in mind that the Federal Reserve is likely to cut interest rates, and the ECB has suggested that perhaps more monetary easing was coming, so that should help lift precious metals in general, not just silver. Even with that though, gravity does jump into the fray occasionally, so it’s hard to imagine a scenario where we can just simply go long at these extended levels. I suspect we have a couple of days to the downside before we can start to nibble at this market again. Going into the weekend it would make a lot of sense to collect profits as well.