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Silver Price Forecast – Silver markets pull back

By:
Christopher Lewis
Updated: Jan 8, 2019, 17:22 GMT+00:00

Silver markets pulled back during the trading session on Tuesday, testing the $15.50 level, before turning around and bouncing again. That’s a very healthy sign, as the market had gotten a bit ahead of itself, but now is showing signs of life again.

Silver daily chart, January 09, 2019

Silver had a good day on Tuesday, even though it fell. This is because not only did we pull back, but we also managed to find support. By doing so, at roughly the $15.50 level, it looks as if there is still a significant amount of tenacity to the bullish pressure, and that of course is going to be a good sign for traders overall. I believe at this point it is likely that we will continue to see a lot of “buying on the dips”, as there are a lot of pressures on not only the US dollar, but there could be a bit of an argument for a “run to safety” feel around the world.

SILVER Video 09.01.19

The $16 level above was the initial target, which makes sense considering that we had previously been in a $1.00 consolidation area and extrapolating that higher as a projected move had us looking at that level. Ultimately, I do think that this market will probably continue to see buyers on dips, as silver has formed a huge rounded bottom, and quite frankly the US dollar will probably continue to struggle a bit due to the softening stance of the Federal Reserve. I believe ultimately we are looking at a scenario where we will eventually break above the $16 level and perhaps go looking towards the $17 level above, which is the top of the longer-term consolidation area, with the $14 level underneath being the massive support from the longer-term. I do believe that silver will continue to grind higher, but I also recognize it will be volatile so small position sizing is crucial.

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

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