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.
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.
