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Silver Price Forecast – Silver markets form resistive candle

By:
Christopher Lewis
Updated: Jun 5, 2019, 17:06 UTC

Silver markets rallied initially during the trading session on Wednesday but found enough resistance near the major level of $15 to turn around and form a shooting star. By forming the shooting star, it looks as if we are going to roll over.

Silver daily chart, June 06, 2019

Silver markets have formed a massive shooting star which of course is a very negative turn of events, and of course the $15 level now looks like it’s going to offer significant resistance as one would expect. By doing this move, it looks like we are going to drift a bit lower, perhaps looking for value a little bit closer to words the $14.65 level, or maybe even the $14.50 level. Remember, this market tends to follow gold which looks exhausted as well. Another handy secondary indicator that I follow is the EUR/USD pair, because it does tend to mimic what’s going on and silver.

SILVER Video 06.06.19

The alternate scenario of course is that we break above the highs of the trading session during trading on Wednesday, which would send Silver much higher as it would not only be breaking the $15 barrier again but would also be wiping out a lot of the selling orders that came into the market during the day. A break above there sends the market looking towards the blue 200 day EMA, and then a break above there sends the market looking towards the $15.50 level longer-term. At this point I think it’s all about the US dollar and risk appetite, and as you can see there was a significant turnaround in the market during the day so I think exhaustion is setting in and we most certainly have an easier time going lower over the next 24 hours then we will have going higher.

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.

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