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Silver Price Forecast – Silver markets test major support level

By:
Christopher Lewis
Updated: Apr 11, 2019, 16:46 UTC

Silver markets broke down significantly during the trading session on Thursday, crashing through the $15.00 level at one point. However, that psychologically important level did in fact offer some support, so it’s not a huge surprise that we bounced back above it.

Silver daily chart, April 12, 2019

Silver markets had a very volatile session during the day on Thursday, breaking down rather significantly. We broke down below the $15.00 level, and even if you cents below there but bounced enough to break back above $15.00. By doing so, it shows just how important that level is, as it is a large, round, psychologically significant figure. In general, I am still bullish of silver unless of course the US dollar strengthens very rapidly, as it could work against the value of precious metals in general. If that’s going to be the case then we could reach down towards the $14.90 level, and then eventually the $14.50 level.

SILVER Video 12.04.19

To the upside I think that the market probably could go to the $15.25 level that it’s going to take quite a bit of momentum to make that happen. At this point, I believe that the market should continue to attract a lot of attention and therefore I think that we will see a lot of volatility from day-to-day as the greenback and financial concerns around the world continue to be a major problem. I’m not looking for big moves, unless we get some type of major financial meltdown, which of course would be very negative. At this point, it’s very likely that the market will continue to be very choppy and very dangerous to say the least. At this point I continue to buy dips but below the $14.90 level I would become very concerned. Keep your position size small.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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