Silver Price Weekly Forecast – Silver markets slam into major resistance

The Silver markets rallied significantly during the course of the week slamming into the $17 level. That is obviously an area that attracts a lot of attention due to the fact that it is a large, round, psychologically significant figure and of course an area where we’ve seen sellers before.
Christopher Lewis
Silver weekly chart, August 12, 2019

Silver markets broke above resistance over the last couple of weeks, reaching towards the $17 level. We have pulled back a bit from there, and the $17 level of course continues offer resistance. If we can break above there, then the market could go much higher. Obviously though, there is a lot of resistance just above here, so it’s going to be difficult to continue to the upside. At this point, I think a pullback is very likely but that pullback should be thought of as a potential buying opportunity more than anything else.

SILVER Video 12.08.19

The size of the candle stick is rather impressive, so I do think it means that we will probably see buyers jump in. That doesn’t mean we can’t pull back, and quite frankly it would make quite a bit of sense as the $17.00 level should continue to cause a lot of problems. I think that we will eventually go higher though, especially considering how impulsive this move has been. The $16.00 level underneath should be support as it was previous resistance.

All things being equal, central banks around the world continue to ease monetary policy, and therefore I believe that precious metals will continue to benefit from this. It doesn’t mean that we can’t see a bit of value and based upon the daily charts I fully expect to see that happen. I’m looking to buy this market close to the $16.50 level and continue to add to a core position.

Please let us know what you think in the comments below

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