Silver Price Forecast – Silver markets look horrible

I wish I could come up with a better headline than “over markets look horrible”, but I think it’s pretty obvious at this point. We have broken through $14.30 level, which was a little bit of support, but quite frankly at this point there’s nothing to stop is going to the $40.00 level.
Christopher Lewis
Silver daily chart, May 29, 2019

Silver markets initially tried to open up on Tuesday a little bit more positive, but now that the liquidity is comeback people came in and sold it right away. As soon as Chicago opened, it was all bad news. There is a downtrend line that continues to keep this market going lower, so at this point I am a seller of rallies. I would anticipate that one of two scenarios are about to play out, and both with equal probability.

SILVER Video 29.05.19

The first scenario is that we simply continue to fall towards the $14.00 level. Certainly, this is a very bearish candle for the Tuesday session and it suggests that we are going lower. However, there are quite often bounces along the way and back could be the second scenario. I believe somewhere nearly $14.50 level, selling silver will be a good trade as well. I still believe that the $14.00 level will offer plenty of support, but it will certainly be tested.

The alternates and something happen with the US dollar and we go racing towards the $14.85 level. A break above that level would be very strong, but at this point I just don’t see how it happens. Short-term rallies should be selling opportunities and I will continue to look for exhaustion to take advantage of. Remember, silver is also an industrial metal, not just the precious metal. This could be a reaction to fears of global demand shrinking.

Please let us know what you think in the comments below

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