Silver Price forecast for the week of January 8, 2018, Technical Analysis

The candle for the week is a bit soft looking, so I think we may pulled back initially in the Silver markets, only to see buyers turn around and pick up value. We are currently in the middle of the overall range for the previous year, so it makes sense to me that we will eventually reach towards the top of the range, which is the $18.50 level. The pullbacks offer value, but be careful and add slowly as it gives you the opportunity to build up a larger position, so you can benefit from the maximum size. I believe that if we can break above the $18.50 level, the market can go to the $20 level next.

Alternately, if we were to break down below the $15.50 level, we probably go down to the $15 handle, and even below there. I suspect that’s very unlikely to happen though, so I like the idea of short-term pullbacks on the weekly chart to give us an opportunity to take advantage of what has been a very strong trend, especially considering that the US dollar has been getting beaten up by other currencies in the Forex market. As the US dollar falls, a lot of times people will go looking towards precious metals to protect their trading capital, or even profit.

SILVER Video 08.01.18