Silver Forecast November 24, 2015, Technical Analysis

Silver markets fell during the day on Monday, breaking well below the $14.00 level at one point. However, we had enough support below to turn the market back around and form a bit of a hammer. The hammer of course is a very positive sign, so having said that we believe that the market breaking the top of the hammer will more than likely have a bit of a bounce from there, reaching towards the $14.50 handle. With this being the case, the market should find enough resistance in that general vicinity to turn things back around and start selling off again. On the other hand, if we break down below the bottom of the hammer, we would be sellers there as well.

You have to keep in mind that the US Dollar continues to strengthen overall, and as a result it will work against the value of precious metals such as silver. After all, the less US dollars it takes to buy things, the less US dollars it will take to buy silver itself. Ultimately, it’s difficult to imagine a situation where we would be buyers of silver although we recognize wholeheartedly that the market has been oversold during the last month.

If you are quick enough, you could perhaps be a short-term buyer on a break out to the upside but we believe the real money will continue to be made on longer-term sell positions as the interest-rate situation continues to favor a stronger US dollar and of course there seems to be very little in the way of demand for silver at the moment as far as industrial situations are concerned. The industrial demand for silver remain soft as economies around the world continue to be soft. In other words, there really isn’t any reason to think that silver will climb for any real length of time and as a result we look at that as “value” in the US dollar as far as silver is concerned. At this point in time, it is not until we break back above the $15 level that we would consider buying.