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Silver Price Forecast October 2, 2017, Technical Analysis

Christopher Lewis

Silver markets rallied a bit after initially falling on Friday as we continue to see a lot of volatility. It looks as if the $16.65 level is going to continue to hold for the short-term, but the longer term charts are looking a bit soft. Because of this, I think it’s only a matter of time before the silver markets break down a bit. However, if we were to break above the $17 level, I think that would attract more buying opportunities. In the meantime, I think that we have a general grind sideways with a slightly negative bias. The US dollar rallying will not help silver either, and I think that we will drop towards the $16 level given enough time. We have to break down through the support level of, and I don’t know that that’s going to happen in the short term. With that being said, I believe that we will get a lot of volatility but I prefer selling rallies for small gains. Overall, I think that there are a lot of geopolitical factors out there that could be the markets, not the least of which would be a “risk off” trade into the precious metal sector as we have seen with the North Korean issues lately, but we have also seen that it is having less of an effect on the precious metals markets. With that being said, I think it’s difficult to get overly bullish when it comes to the PM sector right now. In general, expect noisy trading but I think short-term selling is a possibility for those who are inclined to scalp the markets. If we did break above the $17 level, we could go as high as $18 over the next couple of days. However, this is the least likely of scenarios.

SILVER Video 02.10.17

This article was originally posted on FX Empire

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