Silver Price Forecast December 19, 2017, Technical Analysis

Silver markets gapped lower initially during the Monday trading session but then rallied significantly to blow through that gap. Because of this, we broke out to the upside, pulled back to the $16 handle, and then continue to go to the upside. I think if we can break above the recent highs, the market should then go to the $16.35 level. Short-term pullbacks offer value, and I believe that longer-term traders are continuing to add to their positions and therefore I think it’s only a matter of time before we rally every time we dip. I think that the market is probably best being traded from a short-term perspective, unless of course you can hang onto physical silver. CFD markets are preferred, because they give you the flexibility to trade the appropriate position size.

If we break down below the $15.90 level, the market will continue to drop, but I think in the meantime pullbacks will probably find plenty of buyers between here and there. Longer-term, I think we’re going to go looking towards the $16.50 level above, which has been important in the past. Expect volatility, but if the US dollar falls in general, silver should rally also. On that, geopolitical headlines could come out to move the silver market, as it can be thought of as a safety trade at times. Silver markets are very volatile typically, so smaller positions are favored, as the futures market can cause a lot of issues for those who are not properly capitalized. Silver markets continue to look as if they are showing short-term strength, the question now will be whether we can break out for a longer-term move.

SILVER Video 19.12.17