Silver Price Forecast – Silver markets form shooting star

Silver markets tried to rally during the trading session on Wednesday, but gave back quite a bit of the gains, looking very likely to perhaps roll over. We are at the 50% Fibonacci retracement level which of course has caught my attention as well.
Christopher Lewis
Silver daily chart, March 14, 2019

Silver markets initially rallied during the trading session on Wednesday, showing signs of exhaustion. By forming a bit of a shooting star, that is a very negative sign for traders, and it’s likely that the $15.60 level is going to continue to cause a significant amount of resistance. Ultimately, even though the Gold markets look very bullish, it appears that silver is starting to diverge from gold. If that’s the case, one of these precious metals markets are rapidly becoming mispriced. Granted, silver does tend to lag gold, so there is the possibility that silver place catch up.

SILVER Video 14.03.19

The other scenario of course is that silver leads the way lower, and at this point it’s possible that makes the most sense. Were at the 50% Fibonacci retracement level in the silver market, at the $15.50 level, which of course is a large, round, psychologically significant figure, and of course an area that has caused quite a bit of noise. At this point, if we break down below the $15.45 level, we probably have further downside ahead. Alternately, if we break above the $15.60 level, we will more than likely continue to go much higher, perhaps the $16.00 level.

Ultimately, I think we are going to see a lot of choppiness, and therefore silver is going to be difficult in the short term. I suspect that if you wish to buy precious metals, it’s gold you should be attracted to. If you’re looking to sell precious metals, silver might be your market.

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