Silver Forecast: Ready to Continue Uptrend Given Enough Time

Christopher Lewis

Silver markets have rallied a bit during the trading session on Thursday as we continue to see strength in precious metals markets overall. The Friday session was a bit noisy, and as a result, it is likely that some of this was due to options expirations, but at the end of the day we have been in an uptrend for a while.

The first real sign of strength happened on Monday, as silver fell hard but found enough support at the $17 level to turn around and form a massive hammer beyond that, the $17 level features the 50 day EMA so that is another reason to think that we may have seen buyers. With this, the market looks as if we are starting to see more buying to push towards the upper range that we have been in. The $18 level of course will be a target, as we have tested it several times. If we can break above the $18 level, then it is likely we go looking towards the $18.50 level.

To the downside, the $17 level looks extraordinarily strong, and I do not have any interest in trying to press this market to the downside. In fact, the closer we get to that area, the more likely it is that I will be picking up a little bit of silver along the way. When we break to the upside, it is likely that the $18.50 level will then open up the door to the $19 level. Above there, then the market goes looking towards the $20 level, which is a large, round, psychologically significant figure and an area that opened up massive buying pressure back during the last major financial crisis.

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Looking at this market, I think it is only a matter of time before we break above the $20 level, and there are a ton of reasons that the market will get there, but it is going to be very noisy between here and there. Ultimately, it is exceedingly difficult to imagine a scenario where we simply go straight up in the air, but buyers do come back in and pick up this market every time it pulls back. With central banks around the world continuing to flood the market with liquidity, it will work against fiat currencies and therefore tends to help the precious metals markets in general.

About the Author
Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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