Silver Weekly Price Forecast – Silver markets tread water for the week
Silver markets continue to tread water, hanging between two support and resistance levels. The market has calmed down quite a bit, and I think that precious metals in general are starting to show a proclivity to recover from the significant losses that we have had.
Silver markets were choppy during the week, in a relatively tight range just as all other precious metals were. This market seems to be respecting the $15.25 level for support, an area that has been touched a couple of times on the weekly chart. I think there’s even more support at the $15 level underneath, so I do lean to the upside here but I also recognize that the US dollar has been powering ahead due to concerns about global growth and now concerns with contagion in the European banking system yet again. Remember, when the Euro falls, it naturally drives up the value of the US dollar. That of course weighs upon the value of precious metals. In fact, there’s a huge correlation between the EUR/USD pair and the silver market.
At this point, I think that we need to find support between now and $15 to give any hope to the buyers, and I think we probably will find it. However, if we break down below $15, we will probably unwind to the $14 level rather quickly. I believe that if you can keep leverage low, this is a good market to start investing in. I am a buyer of dips and silver as far as physical metal is concerned and have been stacking for quite some time. Nonetheless, that’s more of an investment and less of a trade. If we can break above the $15.50 level, we could get a bit of momentum toward $16, maybe even $16.50.
