Silver Price Forecast February 8, 2018, Technical Analysis

Silver markets have broken down rather significantly during the day, but I think that we will continue to see bearish pressure, as the market is probably going to go looking towards the $16 level. That being said, a lot of this is based upon the US dollar strengthening, and if it continues to do so, we could see 6 teen dollars it rather quickly.

The alternate scenario of course is that things turn around and Silver markets climb above the $16.50 level, which would of course be very positive. I think that the market continues to be very volatile, but that’s nothing new for silver traders. Silver is not a market that I like trading for short-term gains, I believe it’s more of an investment than a trade, so I look at these pullbacks like this as opportunities to pick up Silver “on the cheap.” I would suspect that somewhere closer to the $16 level, there should be a lot of support underneath that offers an opportunity for value hunters to get involved. However, using as little leverage as possible is the best way to go.

I think that the $16 level act as a bit of a “floor”, as it has a few times recently. If we were to break down below that level, that could change everything. However, I believe that longer-term the US dollar may be in a bit of trouble, and that this recent rally is probably short term. If we do break above the $16 level, we will probably go looking towards the $17 level next. The overall attitude of the market seems to be based around the fear.

SILVER Video 08.02.18