Silver Price Forecast – Silver markets selloff to kick off the weekThe Silver markets fell rather drastically to kick off the week on Monday, reaching down towards previous trading ranges again. Remember, silver is highly volatile, and a return trip from the massive move higher shouldn’t be much of a surprise.
To begin with, if you are silver traitor you recognize that volatility is a daily issue. At this point, it’s obvious that the $14.40 level is support, as it has been resistance in the past. I think that support runs down to at least the $14.20 level, perhaps even the $14 level after that. While I would not jump in front of the selloff, but I think at this point it’s likely that the buyers will return eventually. You should pay attention to the US dollar, because I think it is the biggest driver of precious metals going forward. If the EUR/USD pair rallies, that typically means that the US dollar will fall against most currencies, and then by extension, precious metals.
At this point, I believe that simply waiting for some type of support to come in and pick up silver markets. I would be cautious about doing it here though, I would simply wait for 24 hours of stability to start looking for the trade. This market can move rather viciously, and therefore you don’t want to have too much in the market if it goes against you. At this point, I do believe that the buyers will continue to jump into this silver market between here in the $14 level, an area that has been historically important. If we were to break down below that level, it’s likely that the selling would increase, pressing this market down to the $12 level. I anticipate that short-term buying opportunities should continue to present themselves.