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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US