Silver Price Forecast – Silver markets struggle after initial bullishness

Silver markets initially tried to rally during the day on Tuesday but gave back quite a bit of the gains to show signs of weakness as the 50 day EMA. Suggestions that of the trade negotiations with China are going as well as they once were reported to be has thrown a lot of money into bonds, driving the US dollar higher. Ultimately, a pullback from here is more than likely going to be a buying opportunity though as the $15 level is so crucial. Looking at the chart, I recognize that the $15.50 level will continue to be resistance, so I think it’s very difficult to think that we’re going to get overly bullish in the short term. I think we continue to go back and forth in a general consolidation area, between the $15 level in the $15.50 level.

SILVER Video 10.04.19

If we were to break down below the hammer from last week, slicing through the $14.90 level, the market will continue to go much lower, perhaps down to the $14.50 level. That being said, I still think that consolidation will continue to be the overall attitude, so I believe that a short-term buying opportunity should present itself over the next couple of days. Looking at the chart, we have made a “lower highs, and a slightly “lower low”, so the potential for a breakdown is of course very  possible. Nonetheless, I think that we have more sideways action than anything else. Obviously we have decelerated when it comes to selling on the longer-term chart.

Please let us know what you think in the comments below