Advertisement
Advertisement

Silver Price Forecast – Silver markets find buyers underneath

By:
Christopher Lewis
Updated: Apr 2, 2019, 15:53 UTC

Silver markets fell significantly during the trading session on Tuesday, breaking below the $15.00 level. However, we have seen buyers jump back into the market and push to the upside.

Silver daily chart, April 03, 2019

Silver markets fell rather hard during the trading session on Tuesday but have seen buyers jumping underneath the $15.00 level. By doing so we are forming a bit of a hammer, but the question now is whether or not it can hold? It would make sense for the $15.00 level to offer buying pressure, as round numbers tend to attract a lot of money flow.

SILVER Video 03.04.19

This sets up for a binary trade from what I see, meaning that if we break above the top of the hammer, we probably go to the upside, perhaps reaching towards the moving averages above, near the $15.37 level, perhaps even the $15.50 level. On the other hand, if we break down below the bottom of the candle stick, that opens the door to trading down to the $15.50 level.

One thing that you should be paying attention to is that we have broken through a major uptrend line recently, walked back a bit, and then broke down significantly. That being the case, I suspect that rallies that show signs of exhaustion could be selling opportunities closer to the $15.50 level, but there is obvious support in this general vicinity. All things being equal, we could be looking at a break higher and a return to consolidation in the $0.50 range. Obviously though, if we break down from here then it blows out the trading range and sends more bearish pressure here.

The most obvious thing to do is pay attention to the US dollar, and whether or not it strengthens or weakens. If it strengthens, then the silver market falls, but if it weakens the silver market should rally.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement