Silver Price Forecast – Silver markets run into resistance

Silver markets rally during the trading session on Wednesday but found quite a bit of resistance at the $18.00 level. This of course isn’t very surprising, considering that the large, round, psychological importance of this number of course will attract a certain amount of attention.
Christopher Lewis
Silver daily chart, October 10, 2019

Silver markets have gapped higher to kick off the trading session on Wednesday, and then reached to the upside barrier at the psychologically important $18.00 level. This is an area that of course will attract a certain amount of attention as it is a round number, but beyond that it’s also an area where we have seen the market flip back and forth, so obviously there’s a lot of interest there. All things being equal, if we can break above the downtrend line that crosses through the $18.00 level, then the market should continue to go much higher, perhaps reaching towards the $18.75 level.

SILVER Video 10.10.19

Underneath, the 50 day EMA should offer a bit of support, just as the uptrend line well. At this point, the market is obviously winding itself up for some type of bigger move, and I still believe that move is to the upside. With that, a move above the $18.00 level is a sign that the buyers have finally taken over. To the downside, it’s not until we break down below the $17.00 level that I would be concerned. I do not think that happens in the short term, unless of course there is some type of major breakthrough in the US/China trade situation or perhaps the Federal Reserve looks likely to suddenly tighten rates, something that seems to be all but impossible. Given enough time, I do believe that the longer-term uptrend reasserts itself so I still look at short-term pullbacks as buying opportunities.

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