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Silver Price Forecast – Silver Markets Run Into Resistance

Silver markets have fallen a bit during the trading session on Monday, as the market reach down towards the $14.00 level. Silver is continuing to struggle a bit though, mainly due to the fact that there is a serious lack of industrial demand. While there is a bit of a precious metal trade here, the reality is that silver tends to lag gold in that scenario. Silver needs industrial demand to pick up to really drive it to the upside as strong as traders would like to see, so I believe that the “pairs trade” will continue, when people by gold and sell silver.

SILVER Video 31.03.20

All of that being said, if silver does break down below the $14.00 level, I think it opens up a move down to the $13.00 level. That is where we had broken out of consolidation previously, so I would anticipate that there should be some “market memory” in that area. At this point, if we can turn around a break above the $15.00 level that would be an extraordinarily bullish sign. At that point I would anticipate that silver probably goes looking towards the 50 day EMA which is closer to the $16.00 level.

While I do like the idea of owning silver going forward, I think it’s can it take some time to get the necessary momentum to get overly bullish. However, I of course will let the market dictate when I do this trade to the upside, but I also have been buying physical silver because without leverage it becomes more of an investment than a short-term trade. The candlestick for the day does look relatively constructive, but we need to clear the $15.00 level to have the buyers come in and take over.

This article was originally posted on FX Empire

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