Silver Price Forecast – Silver markets rally to open week

Silver markets rallied quite nicely during the trading session on Monday, gaining over 1% by the time the Americans came on board. I believe that breaking above the $16.15 level triggers an inverted head and shoulders, which based upon measurements should send this market looking towards the $16.50 level, an area that has been important more than once. Because of this, I believe that the market will be attracted to this level, and I think that short-term positions can be taken advantage of to play the accepted range that the market has been in for some time. I think that longer-term, market participants will be looking to break towards the $17 level, but that needs a soft US dollar to continue.

So far, we have that, but that could change based upon risk appetite. It does look as if we have formed a bottoming pattern, and therefore I’m willing to put some money to work now. That doesn’t mean that this is going to be the easiest trade to take, but clearly it would take a bit of patience as a market has been so choppy and volatile over the last several weeks. If we did break down, I would not be concerned until we cleared the $15.90 level, as it would wipe out the entire impulsive move to the upside. I don’t see that happening, so therefore I am positive of silver, at least in the short term as it doesn’t seem to be willing to make a longer-term move.

SILVER Video 10.07.18