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Silver Weekly Price Forecast – Silver tries to rebound

By:
Christopher Lewis
Updated: May 24, 2019, 16:40 GMT+00:00

The Silver markets tried to rebound during the week but did give back some of the gains as you can see. There is a downtrend line that we have to deal with and I think that it’s very likely that we will go looking towards the massive support level underneath.

Silver weekly chart, May 27, 2019

Silver markets initially tried to rally during the week but found enough resistance above the turn around and roll over slightly. At this point in time it’s likely that the $14.00 level underneath will be the “floor” in the market, so I don’t necessarily think that we go much lower. However, I do think that the market will be tempted to test that level. That being said, if we did break down below the $14.00 level, it’s likely that we could go to the $13.50 level, possibly even the $13 level after that.

SILVER Video 27.05.19

The alternate scenario is that we break through the trend line and perhaps even the $14.85 level to go back towards the $16 level. All things being equal, this is a market that will be sensitive to the US dollar and of course global growth as it is an industrial metal. In this type of environment though, it’s simply easier to follow the trend lines and not try to overthink the entire situation. Remember, silver does tend to be very volatile at times, and although we have been very negative for some time, I do think that typically speaking, the market has a somewhat limited downside.

The $16.00 level above is massive resistance, and quite frankly I think it would be very difficult to break above there. If we did, then it would be a huge spike towards the $17.00 level. All things in consideration, I think we go a little lower before buying.

Please let us know what you think in the comments below

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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