Silver Price Forecast – Silver markets slightly positive for Friday session
Silver markets were slightly positive during the Friday session, as the $14 level looms large below.
Obviously, seller was always going to be a bit noisy during the jobs number Friday, but at this point it looks as if the market is essentially hanging about the $14.25 level, knowing full well that the $14 level underneath will be psychologically important. Because of this, I think it is only a matter time before we get some type a significant bounce, but it would not surprise me at all if we had to test the $14 level first. Short term, I still think it’s a lot easier to sell this market on small rallies that show signs of exhaustion, as we continue to see a proclivity to drop. This is all about the US dollar, which of course has been rather strong as of late. That is a bit of an anchor on the pricing of the Silver markets, so keep that in mind.
However, you guys know that I have been buying physical silver for a longer-term investment. I think these low levels are great but putting leverage into the equation can make it very dangerous to trade Silver. Because of this, I continue to buy a little bits and pieces of the physical metal but sell the CFD markets when I get an opportunity. If we break down below the $14 level, that would open up the floodgates and could send this market down to the $12 level based upon longer-term historical charts. Because of this, I am cautious with any long positions I put on. If we break above the $14.60 level, we could have room to run up to the $15 level given enough time. However, I think that might be difficult to achieve in the short term.
