Silver Price Forecast – Silver Markets Smash Into Major Resistance

Silver markets have gapped higher to kick off the Monday session in an explosion of “everything is awesome” again. Anything that was risk related gained, and silver of course gain due to the perceived industrial demand. That being said, silver is an industrial metal and as a result it will move right along with stock market at times. I believe that is essentially what has happened during the trading session on Monday, as the “fear of missing out” has struck at the hearts of the trading community. The reality is that an eight person test of the coronavirus vaccine that produced somewhat decent results and Jerome Powell of the weekend suggesting that the Federal Reserve was more than willing to bail out Wall Street as long as it took, was the main reason for the move in risk assets overall.

SILVER Video 19.05.20

Having said that, the reality will more than likely come back and bite this move. The fact that the market has reached as high as the $18 level only to give up $0.50 almost immediately tells you just how overdone this is at the moment. I anticipate that there probably is still buying opportunities underneath, but the reality is that this market needs to break down and offer a bit of value. The $16 level should be a massive support level, just as the $17 level could be. If $17 gets broken to the downside, it is likely that we will revisit the 200 day EMA at the very least. The alternate scenario of course is that we break higher than the shooting star, but at that point one would have to wonder how much more momentum there could be? Because of this, short-term traders will be fading silver, and longer-term traders will of course be looking for signs of support underneath.