Silver Price forecast for the week of October 30, 2017, Technical Analysis

The Silver markets initially gapped lower at the open at the open for the week, but then turned around to try to break above the $17 level. We get turned right back around to form a negative looking candle, and now it appears that we are going to continue to bounce around between the $17.50 level above, and the $16.50 level underneath. I think that there are a lot of concerns geopolitically, and that puts a little bit of a bid into the silver market, but simultaneously we have concerns with precious metals as the Federal Reserve looks very likely to raise interest rates. I think that we will continue to be very choppy, so it’s can be difficult to trade the silver market from the longer-term perspective. When you look at the 20-moving average on the weekly chart, you can see that we are drifting a bit lower, but quite frankly it is still relatively flat. Because of this, I think short-term traders will continue to push this market back around and somewhat of a tight range. If we break down below the $16.50 level, I would expect to see even more support at the $16 level then we have seen recently.

The US dollar is of course a major driver of where precious metals go next, and it looks as if the US dollar is trying to strengthen. So, I think that you would probably have to favor the downside a bit, but I’m not looking for a meltdown either. In other words, this is going to be very difficult to trade for anything more than a quick smash and grab type position. If we break down below the $16 level, then I think we may have a bit of an air pocket down to the $15 level.

SILVER Video 30.10.17