Silver Price Forecast October 13, 2017, Technical Analysis

Silver markets had a lackluster showing during the Thursday session, initially tried to rally, but then drifting the slightly lower, before turning around again. The $17 level just below continues to be supportive, and I think that the psychological aspect of that number should continue to attract a bit of attention. I think that given enough time, the market will go looking towards the $17.25 level, and then eventually the $17.50 level. Silver of course will benefit from a falling US dollar, assuming we get one. If we don’t, then it could work against the value of the Silver markets as well as other precious metals. Remember, they tend to move together, so pay attention to gold and platinum as well.

Watch the leverage

Watch the leverage in this market, because quite frankly that’s one of the biggest problems that you run into when it comes to trading Silver, as it does tend to be extraordinarily volatile. However, if you can keep the leverage lower, or trade the CFD markets you might be able to take advantage of what could be a decent move, but obviously a noisy one as it is quite a bit less liquid than the gold market. It does move in tandem though, so one can be used as a proxy for the other, or at least a tertiary indicator. Ultimately, this is a market that bounces around significantly, but can be profitable if you are cautious.

The alternate scenario of course is that we breakdown, especially if we clear the $16.80 level underneath. If we clear that level to the downside, it’s likely that we will continue to go towards the $16.50 level, which of course is massively supportive. Ultimately, I believe in the uptrend, but I also have learned a long time ago that you need to be very cautious when it comes to silver.

SILVER Video 13.10.17