Silver Weekly Price Forecast – Silver markets slice through trend line

Silver markets broke down during the week, slicing through a major uptrend line. This of course is a very negative sign, and therefore it looks as if silver could be sending us a signal as far as precious metals are concerned. Remember, silver typically lags gold but they do move in the same general direction over the longer-term charts. Gold is sitting at the precipice, but silver may have told us that precious metals are going to struggle.

SILVER Video 04.03.19

Silver does have a significant amount of support near the $15.00 level, so don’t be surprised at all if we see some type of supportive bounce in that area. However, if we continue to close for the week at the very bottom of the range, that is not a good look. I like silver longer-term, but that doesn’t mean that we are going to go straight to the upside. In fact, if you look you can see a couple of shooting stars on the weekly chart right at the $16.00 level, which of course is a negative sign in and of itself.

If we do rally, you would have to believe that the $16 level above is going to offer a significant amount of resistance. If you are a longer-term investor, then you should welcome these pullbacks because we know that the Federal Reserve is very likely to become very dovish in the future, and that should continue to boost precious metals overall. That being said, you certainly can’t take a long position on these dips with a lot of leverage.

Please let us know what you think in the comments below