Silver Price Forecast – Silver markets stabilize to end the week

Silver markets were range bound during the Friday session, stabilizing after a massive selloff for the week. However, I think that this market still looks very bearish and I think it’s only a matter time before the sellers come back. Looking at the US dollar might provide some clues though.
Christopher Lewis
Silver daily chart, August 20, 2018

Silver markets were range bound during the day on Friday, bouncing from the $14.60 level repeatedly during the session. I think that there is going to be a certain amount of psychological and structural resistance at the $15 level above, and possibly even at the $14.80 level as we have seen on Thursday. It’s hard to imagine that traders would’ve put a lot of money into the precious metals markets going into the weekend, so this type of action is not surprising. I believe that there is probably more risk to the downside that up, but I would also point out that the US dollar looks likely to soften a bit over the next couple of weeks if weekly currency charts are to be believed.

Below current levels, I see the $14 level is a major battlefield for this market and will decide the next several dollars. Ultimately, I think the market needs to try to get to that area to be satisfied for a longer-term move, so expect a lot of volatility between the $14 level on the bottom and the $15 level in the top. If we were to recapture $15.10, then the market could start to rally significantly. Otherwise, it will be a market that you sell weakness and, just as you have been able to for months. I do like silver longer-term, but in its physical form, not anything involving leverage. Start slowly, and then add to your position as it proves correct.

SILVER Video 20.08.18

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