Silver Price forecast for the week of December 4, 2017, Technical Analysis

Silver markets continue to be very noisy, as we initially tried to rally during the week but found the area above the $17 level to be far too resistive to continue to go higher. The market rolled over and reached below the $16.50 level, as it is a support of level that the market has been paying attention to. It’s likely that the market will find buyers eventually, perhaps near the $16.00 level, which has been important in the past as well and is also near the outer band of the Bollinger Bands indicator. I think that the market will continue to knock around quite significantly, and because of this I should point out that the $17.00 level is essentially fair value in the market, so I think we continue to go back and forth towards that area, and if we get a bit too far from that level, it’s likely that we will head back there.

Although it does look a little bit bearish after this past week, longer-term, I see nothing on this chart that tells me that we are getting out of the overall range, between the $16 level on the extreme bottom, and the $18 level on the top. Until something changes fundamentally, I believe Silver continues to be very choppy and range bound, so therefore it’s difficult to imagine a scenario where I would be willing to hang onto a trade for too long, so I think longer-term traders are going to continue to favor the buying and holding onto physical silver, not necessarily leveraged markets.

SILVER Video 04.12.17