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Silver Price Forecast January 23, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Jan 23, 2018, 05:54 UTC

Silver markets were rather quiet during the trading session on Wednesday, testing the $17 level yet again. This is a market that is very quiet, and I think is currently settling into a short-term consolidation area that we can take advantage of.

Silver daily chart, January 23, 2018

Silver markets did very little during the Monday session, as we continue to see the $17 level offer a lot of interest in both directions. Longer-term, I believe that Silver continues to strengthen, because the US dollar has been struggling overall, which of course helps the precious metals sector in general. At this point, if we can rally from here, I think that the $17.40 level will be targeted first, and then eventually we will go looking towards the $18 level again. Otherwise, if we pull back from here I think we could drop as low as $16.25 rather quickly, which should also be supportive, followed of course by the large, round, psychologically significant $16 level.

I believe that the market should continue to be very noisy, as similar typically is. However, I think that the market is deftly skewed to the upside, as it is a situation where as the US dollar falls, people tend to buy silver to protect their purchase power. Beyond that, we also must worry about geopolitical concerns, and that almost always drives precious metals like silver and gold to the upside. I think there is more than enough reason to think that we are only one headline away from a super spike, as it seems the headlines around the world are full of risky propositions. If the marketplace does breakdown, I suggest that you should be looking for buying opportunities at lower levels, as it offers a lot of value. Ultimately, I am bullish of silver, but I also realize that you should be cautious and add slowly.

SILVER Video 23.01.18

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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