Silver Forecast September 17, 2014, Technical Analysis

The silver markets as you can see initially broke higher during the course of the day on Tuesday, but found enough resistance and the $18.75 region to turn things back around and form a shooting star. The shooting star of course is a very negative sign and as a result we feel that this market will continue to drift lower, possibly breaking down. At the very least, we are going to grind around between the current area, and bullish momentum seems very unlikely at this point in time. If we break down below the bottom of the hammer from a couple of sessions ago, we feel this market would then drift down to the $15 level, and then possibly as low as the $13 level. Silver markets look very weak at this point in time, and as a result we think that the sellers will continue to step into this marketplace.

One of the biggest contributors to silver falling lately though has been the strength of the US dollar, and that of course is something that’s going to continue to work against the value of precious metals in general, as the US dollar remains King. With that being the case, the market should continue to be bearish in every time we were rally from this area we would expect to see sellers step back in. There’s no need to purchase silver anytime soon, at least with a leveraged position. We believe that physical silver can be bought and a slow and deliberate manner if you are using for some type of investment or retirement, but as far as being leveraged it is a very difficult market to be involved in right now from the upside as the pain could be rather significant in the near term.

We will look to longer-term charts for buying opportunities, but don’t expect to see them anytime soon. With that, we believe that the action for the foreseeable future will be to the downside as silver continues to get sold by a majority of traders around the world.