Silver Price Forecast – Silver markets pull back
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 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.
