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Silver Price Forecast – Silver markets quietly positive on Monday

By:
Christopher Lewis
Updated: Aug 21, 2018, 05:30 UTC

Silver markets were slightly positive during the day on Monday, gaining 0.33% as I sat down to record this video. However, we still have a significant amount of resistance above at the $15.00 level, and I think there is a certain amount of supply at the $15.80 level. With this in mind, I think choppiness is probably expected.

Silver daily chart, August 21, 2018

With the softening US dollar to start the week, it makes sense that Silver would rally just a bit. However, you can see that there is a certain amount of supply at the $14.80 level, as evident by a massive negative hourly candle during the August 15 session. The $15 level above was previous support, so I think at this point it might end up being resistance, at least from the short-term charts. The last couple of hourly candles have been shooting stars, and it looks like the market is trying to roll over again. Ultimately, I think that there is even more support underneath at the $14.00 level, an area that had seen massive buying over a year ago. There is a huge weekly hammer that bounces from that area, so I think that we will continue to struggle towards that level.

Ultimately, if we rally towards the $14.80 level, and more importantly break above it, then the market will go testing the $15.0 level above. I do not think that that market will break above there easily, but if it were to clear the $15.10 level, then the market continues to go much higher, perhaps towards the $15.50 level. Quite frankly, I believe this is all about the US dollar, so pay attention to it. It did soften a bit on Monday, so that helped. However, it looks as if we may be rolling over already.

SILVER Video 21.08.18

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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