Silver Price Forecast February 7, 2018, Technical Analysis

Silver markets were volatile again during the trading session on Tuesday, initially tried to rally, but have turned around to break down significantly. The $16.50 level offers a bit of psychological support, but it looks as if we are starting to struggle to lift this market. I still believe in silver longer-term, but at this point we are getting a bit of a pullback based upon US dollar strength, and a bit of a “risk off” attitude to marketplace participants. I believe that the Silver markets will follow gold, so pay attention to that market first. If we can get some type of rally in the marketplace, then Silver will more than likely reach to the upside, perhaps reaching towards the $17 level.

If we were to break down below the $16.50 level, the market then goes looking towards the $16 level after that. That’s a level that will attract a lot of attention as well, and I believe that if you can keep leverage out of the equation, you should be able to benefit from these dips longer term. I personally own physical silver, and avoid futures markets, which of course are highly levered. We do not have the clarity nor the stability and risk appetite to drive the value of silver higher over the short term. The US dollar of course will have a lot of influence on this market, and I think that eventually we should see the overall trend continue, but right now it’s obviously a significant sell off in the process.

SILVER Video 07.02.18