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Silver Weekly Price Forecast – Silver markets fall through support

Silver markets fell rather hard during the week after initially trying to rally, as the $14.85 level has kept the buyers at bay. With this, it looks very likely that by slicing through the bottom of the potential falling wedge, this market is going lower.
Christopher Lewis
Silver weekly chart, May 20, 2019

Silver markets have a natural proclivity to go back and forth between $0.25 intervals, so this makes analysis relatively simple once we get a definitive move. As we have broken through the $14.50 level, simple inspection on the shorter-term charts show that there is a certain amount of interest at the $14.25 level, and then the $14.00 level. Rallies at this point are not to be trusted, at least not until we test the major support level at $14.00. I believe that area should be rather stringent for support though, so don’t be surprised at all to see us bounce.

SILVER Video 20.05.19

Once we do turnaround, breaking above the $15.00 level will be a major victory. However, there is the possibility that we break below the $14.00 level, which would be an extraordinarily negative sign. If that happens, I believe that this market will probably reach down towards the $13.50 level and I assume would be accompanied by extreme US dollar strength.

Longer-term “buy-and-hold” positions can still work out, and quite frankly I do believe that silver has a bright future down the road, but that is only if you can trade silver with a low leverage or ride out all of the massive amounts of volatility that you would see in a futures contract. Physical silver is still a favorite of mine, and I do like buying it when it dips like this. That being said, for those who are simply trading short-term charts, meaning anything less than a year, it’s obvious that we are falling from here.

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