Silver Price forecast for the week of December 11, 2017, Technical Analysis

Silver markets continue to be very noisy, capping lower at the open of the week, but then turned around to fill that gap as the $16.50 level offered far too much in the way of resistance. By finding that resistance, we turned around to break down significantly, and we ended up below the $16 level later, which is a very negative sign. Currently, we are testing the $15.75 region, the beginning of significant support, as seen based upon the bodies of larger candles. I think there is even more support near the $15 handle, so I don’t have any interest in shorting this market beyond there.

Currently, I believe it’s probably best to wait for a supportive candle that we can take advantage of, as Silver should start to look relatively cheap in this region. I would then add every $.50 we rally, if we can clear these large, round, psychologically significant numbers. You can see that we are clearly and a larger range, but right now I do not have the right candlestick to put money into the market with any great confidence. If we clear the $16.50 level on the upside, I could be convinced to start buying then, but in the meantime, I think patience will be necessary as Silver has been beaten up so severely. The US dollar has rallied a bit as of late, as interest rates are likely to be bullish in America, and that could continue to make this a very choppy scenario and difficult for that matter when it comes to the precious metal sector in general, and of course Silver is very sensitive to these things.

SILVER Video 11.12.17