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Silver Weekly Price Forecast – Silver Markets Collapsed for the Week

By:
Christopher Lewis
Published: Mar 20, 2020, 16:50 UTC

Silver markets broke down significantly during the week, slicing all the way down below the $12 level. However, we have bounced a bit since then and I do think that the market is oversold.

Silver

Silver markets started out the week above the $15 level, but then broke down below the $12 level rather rapidly. At this point, the market has rallied slightly from there, but I think we may have some work to do here. Don’t get me wrong, I don’t have any interest in selling silver, but I think the market is going to offer quite a bit of volatility but given enough time I do think that the market will be a longer-term bullish opportunity. Just like gold, a lot of forced selling has been part of the equation here, and if gold rallies, I think silver will come along with it.

SILVER Video 23.03.20

All that being said, silver has a bit of an industrial component, so that will probably make silver continue to lag gold in overall relative performance. If we do break down, I’m willing to get involved in silver at the $10 level, so at this point it’s a “buy only” type of situation. With the type of volatility that we have seen as of late, you are better off jumping into the position slowly instead of trying to get in with both feet. Building your position over time is one of the best ways you can protect yourself in what has been an extraordinarily difficult several weeks. Adding as the trade moves in your favor and little bits and pieces is the best way to build up the necessary position size to truly profit for the longer-term. Ultimately, this is a market that should have a nice bounce towards the $15 level, possibly even the $16 level.

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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