Silver Price Forecast February 28, 2018, Technical Analysis

Silver markets went sideways initially during the trading session on Tuesday, hanging around the $16.60 level. We broke down significantly after that as Jerome Powell suggested that the Federal Reserve was prepared to continue raising interest rates, something that of course is US dollar positive. However, I think this is a short-term in its effect, as these comments shouldn’t surprise the market. While the fall was rather strong in the couple of hours after the statement, it is a loss of only 1.5%.

When I look at this chart, the $16 level underneath is massive support, just as the $16.25 level should be somewhat supportive. I think it’s only a matter of time before we rally, so therefore I’m looking at these pullbacks as buying opportunities to build up and pick up a bit of value in the precious metals markets. I believe that the market will continue to find plenty of reasons to go higher, as was looking back through history, the US dollar typically will fall ahead of interest rate hikes, as the market is forward-looking. What I mean by this is that the market already knows what the US central bank is going to do, but as the ECB looks likely to tighten rates, money flows away from the US dollar. The market will remain very noisy, so I think that you should look at silver as a longer-term investment more than anything else. I believe that the $16 level underneath is massive support, and therefore it’s only a matter of time before the buyers return.

SILVER Video 28.02.18