Silver Price Forecast – Silver markets fell hard on Thursday
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 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.”
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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.
