Silver Price Forecast – Silver markets grind sideways

Silver markets went back and forth during the trading session on Monday, as we continue to hang below the vital $16 level, an area that has seen a significant amount of resistance.
Christopher Lewis
Silver daily chart, February 26, 2019

Silver markets went back and forth during the trading session on Monday to kick off the week, as we are testing the $16 level. This is an area that is rather significant resistance, and although we are still in and uptrend, it looks as if it is going to take a lot of momentum to finally break out above there. The uptrend line underneath should continue to offer support as well, so I think given enough time there will be another attempt to break out to the upside.

SILVER Video 26.02.19

The 50 day EMA is sitting just below that uptrend line as well, and therefore I think that it’s only a matter of time before other buyers will jump in and try to push this market to the upside. Beyond that, pay attention to the US dollar because Jerome Powell is speaking in front of congresses week, and he may try to talk down the value of the greenback, which of course will drive the value of silver to the upside.

Having said that, the silver market has been lagging behind the gold market, so therefore although I do think there is opportunity for this market to go higher, it will probably be a bit slower than gold as per usual. The alternate scenario is that we break down below the $15.50 level, which would be very negative and send this market down to the $15.00 level after that. If we break to the upside, the market will then start looking to go to the $16.50 level above as it is an area of previous contention.

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