Silver Weekly Price Forecast – Silver markets continue sideways grind
Silver markets continue to go sideways after breaking through a major downtrend line in what has been a brutal selloff over the last couple of months. At this point, if we can break above the $15 level, then I think the market is free to go higher. I suspect that silver markets will continue to be volatile, as the US dollar has strengthened, but at the same time there has been a huge “risk off” move globally as well, as the precious metals markets offer a bit of safety overall. However, these conflicting pressures continue to make this market sideways in the short term, but I do suspect that eventually we will see the buyers jump in. Silver markets are very sideways at the moment, but I do think that there is a bit of a “beach ball underneath the water effect” in the market, meaning that eventually once we break out to the upside, the market will pop out of the water just as a beach ball will if you hold it down to long.
The alternate scenario is that if we break down below the $14 level, the market then goes down to the $12 level after. That of course is even more significant support based upon the longer-term charts. At this point, I suspect that the value hunters will come in hand over fist. At this point, I suspect that silver is cheap. Because of this I think that buying in low levered positions makes a lot of sense.