Silver Price Weekly Forecast – Silver markets slam into major resistance
The Silver markets rallied significantly during the course of the week slamming into the $17 level. That is obviously an area that attracts a lot of attention due to the fact that it is a large, round, psychologically significant figure and of course an area where we’ve seen sellers before.
Silver markets broke above resistance over the last couple of weeks, reaching towards the $17 level. We have pulled back a bit from there, and the $17 level of course continues offer resistance. If we can break above there, then the market could go much higher. Obviously though, there is a lot of resistance just above here, so it’s going to be difficult to continue to the upside. At this point, I think a pullback is very likely but that pullback should be thought of as a potential buying opportunity more than anything else.
SILVER Video 12.08.19
The size of the candle stick is rather impressive, so I do think it means that we will probably see buyers jump in. That doesn’t mean we can’t pull back, and quite frankly it would make quite a bit of sense as the $17.00 level should continue to cause a lot of problems. I think that we will eventually go higher though, especially considering how impulsive this move has been. The $16.00 level underneath should be support as it was previous resistance.
All things being equal, central banks around the world continue to ease monetary policy, and therefore I believe that precious metals will continue to benefit from this. It doesn’t mean that we can’t see a bit of value and based upon the daily charts I fully expect to see that happen. I’m looking to buy this market close to the $16.50 level and continue to add to a core position.
Please let us know what you think in the comments below
