Silver Weekly Price Forecast – Silver markets continue to find supportSilver markets initially pulled back during the week, but then shot to the upside. However, you can see that we do have the $15 level above. This is an area that is going to continue to be crucial, as it is the scene of resistance previously, and of course is a large, round, psychologically significant number.
The Silver markets have rallied during the week, showing signs of strength, and we are closing towards the top of the range for the week which of course is a very bullish sign. We have broken above an inverted hammer from a couple of weeks ago, which is a bullish sign, and now we have $15 in our targets. I think that if we can break above that level, it’s likely that we will then go to the $15.50 level, and then eventually the $16 level. Overall, this is a historically cheap levels that we have seen a lot of buying at, and I think that will continue to be looked at as a value buying opportunity. I recognize that we will probably have the occasional pullback, but at this point silver has become cheap enough that larger money is starting to come in and pick it up.
I believe that the easiest way to deal with the turnaround is to buy silver in its physical form as it allows you to ride out the volatility. CFD markets allow granular position sizing, and that of course helps as well. Remember, the futures market is $25 a tick, which is only one half of a cent. Because of that, it can be very difficult to hang onto for the longer-term trade. However, if you have the correct account size, this could be an excellent buying opportunity. If we break down below the $14 level, that would be very negative indeed.