Silver Weekly Price Forecast – Silver markets finally break out

Silver markets finally broke out during the week, slicing through the $15 level like it wasn’t even there. I think at this point, we will continue to go higher and ironically it may or may not have to do with US dollar strength.
Christopher Lewis
Silver weekly chart, December 31, 2018

At this point, there are couple of different things it could be going on here. Silver markets have broken above the $15 handle, based upon US dollar weakness in the short term, and perhaps even the possibility that the Federal Reserve won’t raise interest rates as quickly as people had originally thought. Beyond that, it could just be a simple safety play as there are a lot of concerns out there. I think at this point we will more likely go to the $16 level than break down. We had been in a $1.00 consolidation area between the $14 and $15 levels. Because of this, then a move to the $16 level is technically viable.

SILVER Video 31.12.18

The alternate scenario is that we fall back within the consolidation that we just broke out of, and that could send this market as low as the $14 handle. A breakdown below that level should then go to the $13 level, perhaps even the $12 level. That is very unlikely at this point, and I suspect that we will probably go looking towards the $17 level given enough time as it is the top of the longer-term consolidation that we had been in. Ultimately, I like the idea of buying silver on short-term dips, because I think we are starting to see value hunters take over and we may have just left and accumulation zone that a lot of the so-called “smart money” has been trading in. Selling is very unlikely for me to accept at this point.

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