Silver Price Forecast – Silver markets continue to chop during messy Wednesday session

Silver markets were a bit difficult to get a handle on during trading on Thursday, as we have seen so much in the way of noise. A lot of this might have been due to external factors such as the US dollar, but at this point it’s probably best to look at it from a longer-term standpoint.
Christopher Lewis
Silver daily chart, August 09, 2018

Silver markets continue to be very noisy. This is the more volatile of the two major precious metals, so it’s not a huge surprise but the one thing that I would say about the chart I’m looking at is that we are roughly in the middle of the trading range. This always makes for difficult trading, not to mention the fact that it can be dangerous. I think at this point, it’s very likely that we will see a return to the $15.25 level, although I recognize that it will probably be extraordinarily noisy in the process. I think at this point, it probably comes down to the US dollar and whether it is strengthening or not. Silver is highly sensitive to the greenback, which has seen a bit of a resurgence due to global trade fears.

One should also keep in mind that silver is an industrial metal, so it does have a certain amount of global trade influence. I believe that market participants will continue to get involved based upon the greenback, but right now I think the easiest trade is to simply look at the $15.25 level as support, while the $15.50 level is resistance. Because we are in the middle of that, it is likely that we will continue to see a lot of back and forth trading. I would be small with my position, unless of course you are trading physical metal, then you have to look at it as value investment.

SILVER Video 09.08.18

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