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Silver Price Forecast February 14, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 14, 2018, 05:39 UTC

Silver markets initially rallied during the trading session on Tuesday, but then pulled back significantly. After that, we rallied again, and it looks as if Silver markets are trying to make a significant move. I think ultimately, we are starting to see buyers get aggressive.

Silver daily chart, February 14, 2018

Silver markets rallied a bit during the trading session, but then pulled back to find even more support. As we continue to go higher, the market is likely to go towards the $17 level above, and perhaps even $17.50 after that. I like the idea of being long silver, but I also recognize that it might be very noisy. The US dollar falling should continue to be a boost for the Silver markets, which of course are sensitive to the greenback.

I believe that the greenback is going to continue to fall longer-term, and that should continue to put a lot of bullish pressure on silver. I think that the market is a situation where you can buy little bits and pieces along the way on dips, building up a core position. I think that the $17.50 level will be significantly resistive though, and as a general attitude I believe that the Silver markets are probably best played with almost no leverage, or perhaps even with physical silver as the volatility continues to be a major issue.

Longer-term, I don’t have any interest in shorting, as I believe that the $16 level underneath is going to be the “floor” in the market. I do like silver, but I also recognize that being overleveraged can be very dangerous in these types of moves. The market is going to be a situation where caution is best advised, but I certainly think that selling is going to be very dangerous.

SILVER Video 14.02.18

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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