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Silver Price Forecast – Silver markets reached towards support

By:
Christopher Lewis
Updated: Nov 9, 2018, 18:57 UTC

Silver markets fell a bit during the trading session again on Friday, reaching towards the $14 level underneath. This is an area that is crucial, and I think the next couple of days will be very important.

Silver daily chart, November 12, 2018

Silver markets are testing the $14 level, an area that has been massively supportive recently. If we break down below the $14 level, that could send this market much lower, perhaps reaching towards the $12 level which has been important on longer-term charts. At this point, you need to wait for a daily close below $14 to take advantage of that potential opportunity though. Otherwise, if we bounce from here, we could reach towards the $15 level which is the top of what we have seen as massive consolidation.

SILVER Video 12.11.18

As we go back and forth, it looks likely that traders are trying to figure out where we are going to go longer-term. The US dollar strengthening puts a lot of bearish pressure on silver especially, so I think it’s only a matter of time before we would break down rather significantly. At this point, I like selling Silver and I don’t like buying a unless we get some type of supportive daily candle in this region. A perfect example would be something like a hammer or a bullish green candle. The market is most certainly at an inflection point, and at this point I think that you should be a bit cautious, and perhaps keep your trading positions relatively small as we are testing such a major area.

I have been buying physical silver, but that’s an entirely different game as it is a longer-term play and of course the market dropping one dollar isn’t going to wipe me out on 10 ounces. Playing a leveraged position is completely different game though, and therefore position sizing will be everything.

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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