Silver Price Forecast – Silver markets nosedive during volatile ThursdaySilver markets initially tried to rally during the day on Thursday but gave back the gains to break below the $14.20 level again. The market looks likely to continue to be very difficult to trade.
Silver markets try to rally during the day on Thursday, but a bit of panic entered the market, and as silver has been the markets favorite whipping boy lately, it makes sense that it fell. Gold also got pummeled so there was that issue as well. I believe that the market will continue to favor selling silver for the short term, but as I have been telling you I have been buying physical silver because it so cheap. I wouldn’t put any leverage into a long position at this point, it simply far too dangerous. I do recognize that the $14 level underneath will be a major barrier for the sellers to try to break down, as it has been supportive on longer-term charts. However, if we did break down below that level it’s likely that we could go as low as $12 after that. That of course would be a major selling opportunity but until then I think this is all short-term action. Above, I would anticipate that the $14.50 level is a major resistance.
If we can break above that level, then we are looking for the market to go to the $15 level at that point, as it is a large come around, psychologically significant number, and will attract a lot of attention obviously. I think that the market should continue to be one that you play with as low leveraged as possible, perhaps using the CFD market. Futures markets are just far too dangerous at this point. I’m a buyer of physical, but a seller of derivatives.