Silver Price Forecast – Silver Markets Testing Major Support

Silver markets have gotten slammed rather hard during the trading session on Monday to kick off the week, reaching down to the crucial $16.50 level. That is an area that has been supportive more than once, and as a result it’s likely that we will continue to see a lot of volatility, but the $16.50 level has been crucial for more than once and therefore it will be interesting to see if this can hold. If the level gets broken to the downside, that could be a very negative sign for silver. At that point, the market breaking down below the $16.50 level, could open up the door to the $16.00 level underneath.

SILVER Video 10.03.20

At this point, rallies are more than likely going to be short-term buying opportunities, but nothing more than trading opportunities. Ultimately, I do not like the idea of trying to go into the market with large size, but I do think that the longer-term attitude of silver will probably be bullish if you have the ability to write out all of the noisy moves that are certainly going to be part of the markets. At this point in time, it’s very likely that the real money will be made from a longer-term standpoint, but the occasional rally is possible from the $16.50 level for those of you willing to scalp the markets. That being said, this is a market that could be traded as a bit of a “pairs trade”, meaning that some traders will short silver while buying gold.