Silver Price forecast for the week of January 29, 2018, Technical Analysis

Silver markets rally during the week, reaching towards the $17.50 level, but gave back a bit of the gains, showing signs of volatility. However, I believe that the market should continue to go much higher, but we have a significant amount of resistance just above, especially rally $18 level. If we can break above there, the market should then go to the $18.50 level, and then eventually the $19 level and beyond. Longer-term, I suspect that Silver will go looking towards the $20 level as the US dollar looks very unlikely to be strong this year. In fact, we have seen the US dollar selloff against most currencies, so obviously that will put upward pressure on Silver markets, as well as all other precious metals markets.

I think commodities in general will do reasonably well this year, and of course Silver tends to be one of the more volatile ones. I think if we can break to the upside, the major resistance barrier is going to be the $20 level, and I suspect it will be very difficult to break above there. Short-term pullback should continue to offer buying opportunities, but I would keep the leverage low as the noise will be ridiculous at times. I prefer to buy and hold this market, and perhaps even adding on short-term dips. Ultimately, this is a market that should pay dividends, but shorting is all but impossible based upon what we have seen over the last couple of weeks.

SILVER Video 29.01.18