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Silver Weekly Price Forecast – Silver markets run into exhaustion

Christopher Lewis

Silver markets rallied during the week but then rolled over above the 50 week EMA. By doing so, the market looks as if it is trying to reach back down towards the $15.00 level, an area that is psychologically important. It is also an area that has been resistance, so at this point it should be supported. Ultimately, this is a market that should continue to be very noisy but I think that longer-term we will see buyers underneath as the Federal Reserve is looking to cut interest rates. That of course should drive down the value of the US dollar, which of course drives the metals markets higher.

SILVER Video 15.07.19

Beyond that, there is a significant amount of uncertainty in the world and that of course drives up the value of precious metals as well. Overall, I believe that the $15.50 level above is significant resistance and breaking above there would possibly send this market towards the $16.00 level. That being said, you are probably better off using a low leveraged position and try to build up a large size for the longer-term hall.

Short-term pullbacks should continue to offer plenty of value, and therefore you should look at it as such. The $14.50 level underneath being broken to the downside could change everything, perhaps opening with the door to the absolute florid $14.00 level. Overall though, market participants continue to see a lot of volatility so again be very cautious about your leverage as you can get hurt in the silver market.

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This article was originally posted on FX Empire

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