Silver Price Forecast – Silver markets strengthen on Tuesday

Silver markets rallied significantly during the trading session on Tuesday, as we continue to worry about global concerns and trade wars. Beyond that, there are a plethora of potential landmines out there that could cause issues.
Christopher Lewis
Silver daily chart, December 12, 2018

Silver markets have bounced from the 50 day EMA, as we should then go to the $15 level above. If we can break above the $15 level, then the market could go much higher, at least to the $16 level due to the consolidation area that we have been in for some time. However, I’m not a buyer of that move until we close on the daily candle stick above that level. Otherwise, if we see some type of exhaustive candle in that region, I’m more than willing to start shorting as it could send this market back down to the 50 day EMA. At this point, it’s a bit difficult to trade this market unless you are looking at a longer-term investment. In that scenario, I would be very cautious about having any form of leverage, and perhaps looking at Silver rounds or coins.

SILVER Video 12.12.18

The $14 level underneath is massive support, so if we were to turn around and break below that level, we could go down to the $13 level based upon the consolidation area, then perhaps down to the $12 level. I think that silver will continue to be very volatile, and if you are short-term trader you can probably plan on trading this consolidation area repeatedly.

Looking at the totality of the market, I think you should also pay attention to the US dollar. If it strengthens, that can often work against the value of silver. However, there are times where people run for safety overall, where the greenback and precious metals gain as well. If it’s a fear-based rate, we could get both rising.

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