Silver Price Forecast November 23, 2017, Technical Analysis

Silver markets have been volatile during the trading session on Wednesday, breaking above the $17 level after initially grinding sideways. Breaking above the $17 level is a bullish sign, but it’s likely that the $17.20 level will begin a significant amount of resistance, as we continue to be in consolidation from what I’ve seen so far. It looks as if the stochastic oscillator is starting to reach into the overbought area, and it also looks as if we are getting ready to cross of the moving averages. Because of this, I think it’s only a matter of time before the sellers return, and as I have been telling you for some time, every time we rally or fall significantly from the $17 level, it’s likely that the market will snap back to that level as it is an area that is “fair value.”

Silver markets will probably struggle to move over the next 48 hours, as quite frankly the liquidity in the futures markets should be very thin during electronic trading, as the Americans are going to be away for the Thanksgiving holiday. Because of this, I think you are probably better off to assume that there will be more of the same action as we have seen recently, and I believe that the market need some type of geopolitical event to have money flowing into precious metals with any type of significance. Until then, look at this as a “reversion to the mean” type of market, and I think that using the stochastic oscillator as a secondary indicator along with price action continues to be the best way to trade Silver. If we were to break out above the $17.25 level, the market could continue to go higher. However, if we break down below the $16.80 level, I think we would start to go lower from there. I just don’t see the catalyst in the meantime.

SILVER Video 23.11.17