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Silver Price Forecast – Silver markets find support

Silver markets have pulled back a bit during the trading session on Friday but have found support to form a hammer shaped candle stick. At this point, the market looks ready to continue going higher given enough time though, especially considering that the weekly candle stick is also a hammer.
Christopher Lewis
Silver daily chart, October 07, 2019
Silver Coin Bullion

Silver markets have initially falling during the trading session on Friday but turned around to bounce and form a hammer from the 50 day EMA. By doing so, the market looks ready to go higher, to reach towards the $18 level. It’s only a matter time before the market breaks out to the upside though, because quite frankly the geopolitical situation continues to cause major issues. At this juncture, there are plenty of geopolitical situations that demand safety, just as there are economic conditions failing. Beyond all of that, we also have central banks around the world cutting interest rates and doing more quantitative easing. If that’s going to be the case, the precious metals should be a beneficiary.

SILVER Video 07.10.19

Underneath, we have the 200 day EMA sitting at the $16.19 level, and that of course will define the overall trend. It’s very unlikely that we reach to that area unless of course we get some extraordinarily good news coming from the economic front. The other possibility would be some type of hawkish stance by the Federal Reserve, but right now that doesn’t look to be very likely. Ultimately, this is a market that seems to go higher over the longer-term, and you can even make an argument for a bullish pennant on the weekly chart that suggests we could go as high as $25, but obviously that would be months down the road. All things being equal, buying dips should continue to be the way forward.

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