Silver Price forecast for the week of July 31, 2017, Technical Analysis

Silver markets initially fell during the week, but turned around to form a rather bullish pressure and then reached above the $16.50 level. This is a market that continues to look like it is trying to form a bullish bottom, as a month ago we formed a massive hammer, but now have taken that complete hammer out. This is a very bullish sign for silver, and of course with the Federal Reserve looking very dovish, it makes sense that Silver would continue to climb against the US dollar. I believe that the market will go looking for the $17 level next, and then eventually $17.50 where I see a little bit more in the way of resistance. The market is setting up for a nice longer-term move, and therefore I feel it’s more of an investment than anything else. Given enough time, I expect that the silver market will go looking for the $20 handle. The market has been rather volatile, so I would be a bit leery of taking out highly leveraged positions.

Buying dips

I continue to buy dips in this market, but I recognize that there is a certain amount of danger in trading Silver. Giving wrong, I think we are going to go higher, but with the leveraged positions you can do a lot of damage based upon market noise. Because of this, I believe that the market is best treated with either physical silver, or perhaps low leveraged positions in the CFD markets, or may be options. Either way, I am bullish but I recognize that we will be very skittish as per usual in the Silver markets. I believe that we will reach the $20 level, but it may be several months, if not a full year before we get there.

SILVER Video 31.7.17 31.7.17