Silver Weekly Price Forecast – Silver markets test crucial support for the week

Silver markets fell during the week, breaking below the $15.00 level, an area that is massive support. Longer-term buyers have come back into the marketplace, and we could not break down below the $15 handle, which I see as the bottom of the “zone.”
Christopher Lewis
Silver weekly chart, July 23, 2018

Silver markets had a rough week, initially gapping lower on Monday, and then breaking towards the $15 level underneath. However, we have turned around of form a bit of a hammer, mainly due to the words of Donald Trump, suggesting that perhaps interest rates in America need to be kept lower, as other central banks around the world and keep their currencies artificially low. I believe that the market participants have overreacted to that, but it was the excuse that this market needed. At this point, I still believe in the support zone just below, and I think that longer-term traders are going to be looking for an opportunity to pick up silver “on the cheap.” I believe that the market participants will not only be looking to buy-and-hold from the physical side, but I also believe that futures traders will look at this as an opportunity to buy at a major demand zone.

If we were to break down below the $15 level, I think things could get rather dicey in the short term. However, back in July 2017, we had seen a lot of volatility below that level and turned around quite drastically. I suspect that would happen again as the market has so much in the way of demand underneath this area. That being said, if you can keep the leverage low or by physical silver, it’s still on sale but probably won’t be for long. The US dollar has been overbought for some time, so a retracement of the currency makes sense, and that should lift silver as well.

SILVER Video 23.07.18

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