Silver Weekly Price Forecast – Silver markets form a hammer for the week

Silver markets broke down initially during the week, slicing below the $14 level. However, we turned around of form a hammer, which is of course a bullish sign. The market continues to look at the $15 level above as resistance, and I think at this point it’s likely that the level will continue to offer some selling pressure. However, if we were to break above there we could go much higher. As I mentioned in the preamble, the futures markets have broken through a major uptrend line in the last several months, which goes back 20 years. Because of this I think it’s only a matter time before selling pressure will reappear. This is especially true if the US dollar can continue to strengthen.

SILVER Video 19.11.18

If we break down below the candle, then the market could unwind down to the $13 level, possibly the $12 level after that. Quite frankly, I like the idea of buying silver in its physical form, because I think eventually we will get enough momentum to go higher, if you have enough time to wait for it. This is a market that is extraordinarily cheap right now, but it looks like it could very well get a bit cheaper before it shoots higher for a longer-term move. Because of this, I don’t believe in using leverage to the upside right now. I would of course use it to the downside because of the overall trend in general.