U.S. Markets closed

Silver Price Forecast – Silver markets continue to hover around major level

Christopher Lewis

Silver markets continue to be very choppy overall, as we don’t really know where to go next due to risk appetite fluctuating around the world. As I look at the market right now, it’s obvious to me that we are currently consolidating between the $14 level on the bottom, and the $15 level on the top. With that in mind, I believe that following the 50 day EMA is probably the best way to go, as it is starting to tilt a little bit lower again. However, I recognize that the bigger picture says that we are in a $1.00 consolidation box, so therefore you should play the market as it shows itself.

SILVER Video 07.12.18

If we break down below the $14 level, that opens up fresh new selling, and could send this market much lower, perhaps down to the $12 handle. The $12 handle is crucial for support on longer-term charts, and therefore I think it will be a huge new battlefield to deal with. Ultimately though, you should also pay attention to the fact that we have recently broken through a major uptrend line on the twenty-year chart. Because of this, I do think that we continue to see selling pressure and will eventually break to the $12.00 level. However, if we do break above the $15.00 level, then you need to recognize that things have changed, and we would probably continue the previous consolidation, which could send this market looking towards the $17 level. At the end of the day, it’s going to come down to the greenback and how it’s valued. If the US dollar continues to strengthen, that will put a lot of damaging pressure in this market.

This article was originally posted on FX Empire