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Silver Weekly Price Forecast – Silver markets form a massive shooting star

The Silver markets have had another volatile ride during the week, shooting towards the $20 level before pulling back massively to form a shooting star. This obviously has caught the attention of longer-term traders.
Christopher Lewis
Silver weekly chart, September 09, 2019

Silver markets initially fell during the week, filling the gap from the open on Monday only to turn around and raise towards the $19.75 level. At that level, we had broken down and fallen pretty hard, to form a massive shooting star. That shooting star is a sign of a potential pullback, and quite frankly I think it should be welcomed even by the bullish traders out there. The Silver markets desperately need some type of value brought back to them, because the month of August was a 15% gain, which of course is overdone.

SILVER Video 09.09.19

The gap underneath has not been filled yet, and that very well could be where we are going longer-term. These types of pullbacks after a massive parabolic run can be brutal and quick, but at that gap, which is closer to the $17.50 level, I would become aggressively long. The alternate scenario would be breaking above the $20.00 level which would represent a bit of a “blow off top” which would make me very nervous at that point as well.

All things being equal I think that the longer-term outlook for silver and precious metals in general is relatively good, because there is a massive amount of quantitative easing coming out of central banks and that should only continue to be a major problem. In general, I’m a buyer on dips and I think that the market will offer value occasionally. The central banks adding more quantitative easing and of course bond buybacks will continue to drive money in the hard asset such as silver.

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