Silver Price Forecast – Silver markets choppy on Tuesday

Silver markets continue to be very choppy, as we initially rallied during the day on Tuesday but then turned around to fall again. As I record this, it looks like we are trying to rally yet again.
Christopher Lewis
Silver daily chart, September 19, 2018

Silver markets have been very noisy during trading on Tuesday, essentially giving both the buyers and sellers an opportunity to make money. Market participants continue to look at this as an opportunity to range trade, and I think that it is becoming more obvious that the $14.10 level is significant support. I think that if we can break above the $14.35 level, then the market could go much higher. I think that the $14.30 level is the beginning of that resistance, so we are essentially trading in a $0.20 range. Overall, the market has been very reliable in the sense that we have stayed in this range for so long, and of course the correlation with the US dollar.

As the US dollar rises, I’m a seller of silver. However, longer-term I am a huge fan of silver for the longer-term move. I like the idea of buying physical silver but won’t do so in a leveraged market. The situation has been clear for me for some time: if the US dollar rises, I sell silver. However, if the US dollar falls, I’m a buyer of gold as it has been outperforming for some time. I have been buying silver in physical ounces for some time now, as having no leverage in that position makes a $0.25 loss completely unimportant. Overall, I believe that we are stuck in this range as the Federal Reserve is going on a hype cycle, and of course there is a lot of concern when it comes to global tariffs.

SILVER Video 19.09.18

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