Silver Price Forecast February 6, 2018, Technical Analysis

Silver markets continue to be very difficult to deal with, as we had initially rally during the trading session on Monday, reaching as high as the $16.90 handle. We rolled over from there, showing signs of weakness again as the Americans sold off the stock markets, crypto currencies got absolutely crushed, and of course the bond markets were out of kilter. This is a market that is selling off in fear more than anything else, and I think we are going to go down to the $16.50 level next. That’s an area that should be supportive, and if we were to break down below there, the market probably goes looking towards the $16 level after that.

Currently, I look at the $17 level as a bit of a “ceiling”, and I think if we can break above there then we will make a move to the $17.25 level. After that, the $17.50 level, and the $18.50 level which I see as a massive resistance barrier on the longer-term charts. Silver does tend to be very volatile, so this significant pullback should not be much of a surprise, just as the search higher shouldn’t have surprised either. It is because of this that I always think that Silver should be traded with almost no leverage, because it is simply too dangerous to hang onto at times. Longer-term though, Silver has a very bright future ahead of it, as the US dollar will more than likely struggle later this year.

SILVER Video 06.02.18