Silver Price Forecast – Silver markets tread water for Monday

Silver markets did very little during the trading session on Monday as we opened the week with very little enthusiasm. The $15.50 level has offered a significant amount of resistance, so therefore we could and continue to climb. This is an area that looks likely to cause a lot of pressure, so we will have to wait and see whether the market can turn its attitude around.
Christopher Lewis
Silver daily chart, July 24, 2018

Silver markets have stalled at the $15.50 level, an area that had previously been both support and resistance. On the longer-term charts, this is the top of a serious demand zone, so I think that longer-term traders are starting to accumulate silver, especially in its physical form. However, shorter-term charts to dictate that we may need to pull back a little bit to build up the necessary momentum to break higher. Beyond that, pay attention to the US dollar as Silver is highly sensitive to what’s going on there. You can keep track of this either through the EUR/USD pair, or by watching the US Dollar Index.

Market participants will be paying attention to global fears, especially when it comes to the trade war. Some people will look to silver as a bit of a safety play, but others will look at it as a way to diversify away from the greenback. Overall, I think silver is a bit undervalued it these levels, so I do like the longer-term outlook for it. In the short term though, I would not be surprised at all to see this market dropped towards the $15.50 level to build up enough momentum to break out to the upside and perhaps reach towards the $15.75 level next. In general, I think the one thing you can count on is a lot of volatility.

SILVER Video 24.07.18

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