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Silver Price Forecast – Silver markets fall to kick off the week

By:
Christopher Lewis
Updated: Oct 9, 2018, 04:57 UTC

Silver markets fell rather significantly to kick off the week on Monday, reaching down towards the $14.30 level. There is a certain amount of support underneath, and this could basically be driven by a bit of a “risk off” attitude globally.

Silver daily chart, October 09, 2018

Silver markets fell a bit during the trading session on Monday, as we continue to see a lot of fear around the world. The $14.30 level underneath of course has a certain amount of psychological and structural support attached to it, along with the $14.35 level. I think at this point, it’s possible that we may see continued volatility and selling on rallies, but I think longer-term traders are most certainly looking to the upside. This is essentially a “to speed” market, meaning that traders are willing to sell silver for the short term, while many of the longer-term and large players are accumulating physical silver. Ultimately, I don’t have any interest in trying to hang on to a longer-term trade in a leveraged instrument, but I do like buying physical silver because I think it’s cheap. However, if we break down below the $14 level it would open the door to the $12 level.

On the upside, I think there is obvious resistance to be found at the $14.50 level and breaking above there could free the market to go to the $14.70 level over the next couple of sessions. Silver is almost always volatile anyway, so the fact that it is acting so choppy and negative over the last several days isn’t much of a surprise. Pay attention to the US dollar, it will have a significant effect on silver itself, so as it rises I believe that more sellers will come into this silver market and start shorting again.

SILVER Video 09.10.18

About the Author

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.

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