Silver Price Forecast – Silver markets fall hard on Monday

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Updated: Aug 7, 2018, 05:36 GMT+00:00

Silver markets fell hard to open the week on Monday, as we reached down to the $15.28 level. The market has recently bounced from the $15.23 level, an area that I would expect to see a lot of interest. However, I think that short-term pullbacks will probably continue to attract value hunters, but I also recognize that the $15 level underneath is a major level that could cause support as well.

Silver markets pulled back a bit during the trading session on Monday, dropping $0.20 initially, but then found a bit of support near the $15.28 level. There was a significant rally from just under this level a couple of days ago, so it makes sense that value hunters could be coming back. However, silver is a very choppy and difficult market to trade at times, and it’s very expensive if you are in the futures market. Because of this, you need to find a way to play the silver market for value but with a low amount of leverage.

CFD markets could be an excellent way to play this market, just as options could be in the futures market if you have the rightsizing. Buying the SLV ETF could be a solution as well, if you’re looking for a longer-term investment. At this point, I do recognize we could go lower but I would be a bit cautious about shorting with size, because we are getting close to the bottom of the longer-term support on the weekly and monthly chart. Overall, I’m bullish longer-term, but I also recognize that the US dollar needs to calm down before silver or gold could make some type of bullish move to the upside. In the meantime, I would expect a lot of choppiness, but I also think that there’s more risk to the upside than down at these levels.

SILVER Video 07.08.18

About the Author

Christopher Lewisauthor

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.