Silver Price Forecast – Silver markets gap higher but give back gains

Silver markets gapped higher at the open on Thursday, then shot higher only to give back the gains. Because of this, it looks like we will continue to struggle overall.
Christopher Lewis
Silver daily chart, March 22, 2019

Silver markets broke higher on the initial gap during the trading session on Thursday, reached much higher but then turned around to show signs of exhaustion again. By doing so, it looks as if the silver market is probably going to drop from here, at least pulling back in the short term. Overall, it looks like the market is going to find the $15.50 level significant, as we have seen several pullbacks from that level. However, if we can turn around and break above the top of the candle stick for the Thursday session, we could go much higher. I suspect that were going to get a pullback to roughly $15.28 though, so having said that short-term selling will probably continue to be a major issue.

SILVER Video 22.03.19

Pay attention to the US dollar, because it will of course have a significant influence on what happens with the precious metals market, as a stronger US dollar will typically work against both silver and gold. Ultimately, I do think that the $15 level underneath is massive support, just as the $16 level above is massive resistance. However, the last couple of candlesticks have been rather exhaustive looking, so it suggests that perhaps we are going to struggle to continue going higher at least in the short term. From a longer-term standpoint, to me it looks as if we are going to continue to consolidate between $15 and $16, so I continue to trade this market back and forth. Ultimately, pay attention to the EUR/USD pair, for a quick reference as to whether the US dollar is going to strengthen or weaken.

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