Silver Price Forecast – Silver Markets Plunge AgainSilver markets crashed almost 15% during the trading session on Monday, as the world continues to freak out about the coronavirus. At this point, the $12 level had been a major target longer-term for me, that perhaps the sellers would try to reach. They arty have.
Silver markets continue to be extraordinarily volatile, as we see a lot of negativity over the last couple of trading sessions. Monday has seen the silver market reach down towards the $12 level, which is a large, round, psychologically significant figure and of course an area that had been important many months ago as resistance. Now that we have retested this level, I suspect that sooner or later the market will bounce rather hard, because it is so far oversold. At the very least we need some type of “dead cat bounce”, which should bring in a massive move to the upside.
SILVER Video 17.03.20
If you’re a longer-term trader though, this is a screaming signal to start buying relatively soon. After all, the market is likely to see a reaction just as strong to the other side, as is typically the case. Ultimately, this is a market also needs to see industrial demand pick up, so it is crucial to see things stabilize and perhaps signs of growth before silver can truly take off to the upside, but I think that it’s only a matter of time before that happens. After all, a sudden selloff like this, once the dust settles, will offer a great buying opportunity for those who are waiting to see an opportunity to go long. I think this is going to be seen as a major buying opportunity down the road, but ultimately it will take a certain amount of resiliency to hang onto any type of rebound. If the market does break down below the lows of the trading session, the next support level will be found at the $10 level.