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Silver Weekly Price Forecast – Silver markets continue to grind lower

By:
Christopher Lewis
Updated: Sep 8, 2018, 06:16 UTC

Silver markets broke down a bit during the week, testing the $14 level at one point. That’s an area that is crucial, so keep in mind that a lot of big players will be paying attention.

Silver weekly chart, September 10, 2018

Silver markets broke down during the week again, as we continue to see a lot of bearish pressure. At this point, it is oversold, and we have seen support at the $14 level. By turning around the way we have, it looks likely to try to bounce from here, but quite frankly we need a bit of a break from US dollar strength. As long as the US dollar continues to strengthen, that will continue to weigh upon silver. However, I think there is a short-term bounce ready to happen. I think that the $15 level above will continue to offer resistance. If we can break above the $15 level, then the market could go much higher, perhaps reaching towards the $16 level after that. That’s an area that was previous support, and it should now be significant resistance. I would be surprised to see silver break above there anytime soon.

If we did break down below the $14 level, that would be a very ominous signal for the future of silver, perhaps sending it down to the $12 level rather quickly. At that point, I think there’s even more support based upon church going back several years. I expect to see a bounce over the next several weeks, but if we don’t get one it will be because of the greenback itself. Silver is getting hammered week in and week out, and a simple “dead cat bounce” is probably do. That doesn’t mean I would buy it in a leveraged form, just that you make it an opportunity to sell CFDs at higher levels.

SILVER Video 10.09.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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