Silver Weekly Price Forecast – Silver markets pierce major resistance

Silver markets initially drifted a bit lower during the week but then shot higher as the Federal Reserve has suggested that they are going to stay somewhat neutral, or at least “data dependent.” Because of this, I think that the market is taken that the Federal Reserve is going to soften its stance on interest rates and balance sheet reduction. This should be negative for the US dollar, which by extension should lift silver. Ultimately though, I think that the market may have got a little bit ahead of itself. If you squint your eyes though, you can make out a bit of a bullish flag on the weekly chart of silver.

SILVER Video 04.02.19

With that in mind, I think that pullbacks to the $15.50 level should offer a lot of interest for buyers, just as a break above the top of the candle stick for the weekly chart would be. At that point, I think that the silver market should go looking towards the $17 level, an area that has been massive resistance in the past. I think that essentially we have been consolidating between the $14 level on the bottom, and the $17 level on the top of the last several years. With that being the case, it makes sense that we test the highs again as per usual in consolidation.

I believe that the silver market will be driven almost wholly by the Federal Reserve, as it certainly has had the most effect on precious metals, both silver and gold alike. If gold continues to behave the way it has, that could drag the silver market right along with it.