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Silver Price Forecast December 7, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Dec 7, 2017, 06:02 UTC

Silver markets went sideways initially during the trading session on Wednesday, but broke down below the $16 level. By doing so, I think we are going to see a continued selling pressure, but we are getting a little bit oversold on short-term charts.

Silver daily chart, December 07, 2017

Silver markets struggled a bit during the day on Thursday, initially going sideways but then breaking down below the $16 handle. That of course is a large, round, psychologically significant number, and I think that we will go looking towards the $15.50 level underneath, and then of course the large, round, psychologically important figure of $15. Looking at the hourly chart for a bounce or supportive candle might be an opportunity to wait for short-term volatility and exhaustion to start shorting again. If we were to break above the $16.20 level, then I think we probably go towards the $16.50 level.

Longer-term, I believe in buying the silver near the $15 level on signs of support for a longer-term “buy-and-hold” scenario. We will have to pay attention to the US dollar, because of a continues to strengthen that of course works against the value of precious metals in general. The Silver markets are more of a longer-term investment than anything else, but if you are a futures trader, be patient and wait for nice selling opportunities in the short term, only to turn around near the $15 level where we should see a lot of demand. A breakdown below the $15 level would change everything, perhaps crushing silver down to the $12.50 level. In general though, I believe that using low leverage in holding onto silver longer-term in the physical form is probably the best way to take advantage of what will eventually be a very strong bullish market.

SILVER Video 07.12.17

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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