Silver Price Forecast December 4, 2017, Technical Analysis

Silver markets did very little during the trading session on Friday, testing the $16.50 level after going sideways as it was announced the General Flynn was testifying against the White House for the Russian probe, which of course works against the value of the US dollar. However, cooler heads prevailed and we saw the US dollar pick up value again, and that of course sent silver lower. Currently, looks as if the $16.50 level is going to be resistance, and we may go looking towards the $16 level after that as it is the bottom of the consolidation area for the previous year, with the $18 level above being the top. I think that the market continues to be very volatile, but as we start to get closer to the $16 handle, I am going to be looking for buying opportunities on signs of support. Alternately, if we break above the $16.50 level, then we probably go looking for “fair value”, which is the $17 handle.

Volatility should continue, because this market is quite often driven by the value of the US dollar, which is shaky at best. If we were to break down below the $16 level, that needs to be congruent with a US dollar breaking down in the Forex world. So whatever you do, pay attention to the US dollar, and perhaps even the US Dollar Index, as it gives you an idea as to where this market should go considering they are inversely correlated. Expect volatility no matter what happens, but that’s normal for silver as it is a thin market at times.

SILVER Video 04.12.17