Silver Price Forecast – Silver markets show signs of extreme exhaustionSilver markets rallied a bit during the trading session on Friday, cracking above the $15.00 at one point. However, once the adults came into play at the open pit session, the sellers came in and crushed the market.
Silver markets tried to rally a bit during the trading session on Friday, breaking above the $15.00 level early in the day, but as soon as Chicago traders came back in to trade, they started shorting this market immediately. We ended up forming a massive shooting star and that of course will attract a lot of attention. Silver of course is very sensitive to the US dollar, and of course the metal isn’t only a precious metal to be traded, but it also recognizes itself as an industrial metal.
SILVER Video 17.06.19
If we break down below the 50 day EMA which is currently sitting just below that level, it’s likely that we would go down to the $14.60 level. Below there, I think it opens up the door to the $14.50 level. However, if we were to break above the shooting star, that would be an extraordinarily bullish sign and probably send the market looking towards the 200 day EMA. Although we did break above the downtrend line a couple of weeks ago, the reality is that silver is a market that continues to get sold off with fervor. I believe that silver will continue to underperform gold, which is the way we have been for some time.
If the stock markets start to sell off, it’s likely that the Silver markets will certainly underperform gold, because although people will rush to gold for safety, silver gets hammered because of its need for industrial demand. With that, I believe that if the precious metals markets sell off, this is the first place you should be shorting.
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