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Silver Price Forecast – Silver markets fell hard on Thursday

By:
Christopher Lewis
Updated: Sep 28, 2018, 05:10 UTC

Silver markets fell rather hard on Thursday, as the US dollar gained strength and of course there seems to be a continuation of the overall consolidation. At this point, I think that if you are patient enough there could be a nice buying opportunity.

Silver daily chart, September 28, 2018

Silver markets broke down during the trading session on Thursday, gapping rather hard. The US dollar strengthened a bit which of course work against silver, and of course we are seeing Gold markets fall as well, which has a bit of a knock on correlation when it comes to this marketplace. Overall, I believe that there are buyers waiting below, especially down at the $14 region which we have seen more than one bounce from that area on the longer-term chart. I do believe in silver over the longer-term, but clearly right now we are a bit shell-shocked and therefore I would be cautious about putting on highly levered positions. I think that overall we should continue to see a lot of noise in this market, but as we have fallen so hard in the short term, I don’t have any interest in shorting this market. In fact, the closer we get to the $14 level of the more likely I am to go long on a “flyer.”

The $14.50 level above has shown itself to be very resistive, but that’s nothing new. I believe that we continue to bounce around and show signs of volatility in this market, and I think that should continue to be overly difficult to hang onto a trade. If you do wish to buy silver like I do, I buy it in its physical form for the longer-term. I’m not saying we can’t buy silver undelivered market, but I need to see a closer to major support in order to feel comfortable. As far shorting is concerned, unfortunately that trait has already passed.

SILVER Video 28.09.18

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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