Silver Price Forecast – Silver markets recover after selling on Monday

Silver markets broke down a bit during the trading session on Monday, reaching towards the $14.75 level before bouncing quite stringently. With that being the case, perhaps a recovery could be underway.
Christopher Lewis
Silver daily chart, April 16, 2019

Silver markets initially fell during the trading session on Monday to reach towards the $14.75 level. However we have found plenty of support underneath the turn things around and form a bit of a hammer. The hammer is preceded by what could be thought of as an inverted hammer or even the shooting star, but at this point in time the one thing that I think this does show is the great potential for volatility, choppiness, and extreme confusion. Ultimately, this is a market that will move in reaction to whether the United States dollar rallies or falls, as silver tends to move in the other direction.

SILVER Video 16.04.19

If we were to break above the top of the candle stick for the trading session on Friday, then it’s likely that we will go looking towards the $15.25 level. On the other side of the equation, if we were to break down below the $14.75 level, then I think silver will probably drop down to the $14.50 level, possibly even the $14.00 level after that. After all, this market does tend to move in increments of $0.25 at a time.

The volatility that we are seeing in commodity markets is a direct result of a lot of indecision as far as global growth forecasts are concerned. There is a lot of back-and-forth out there, and therefore it should be clear that the first order of business now is going to be protecting your account. Overall, make sure your stop losses are in place because we are seeing extreme swings in sentiment on an almost daily basis.

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