Silver Price Forecast February 14, 2018, Technical Analysis
Silver markets rallied a bit during the trading session, but then pulled back to find even more support. As we continue to go higher, the market is likely to go towards the $17 level above, and perhaps even $17.50 after that. I like the idea of being long silver, but I also recognize that it might be very noisy. The US dollar falling should continue to be a boost for the Silver markets, which of course are sensitive to the greenback.
I believe that the greenback is going to continue to fall longer-term, and that should continue to put a lot of bullish pressure on silver. I think that the market is a situation where you can buy little bits and pieces along the way on dips, building up a core position. I think that the $17.50 level will be significantly resistive though, and as a general attitude I believe that the Silver markets are probably best played with almost no leverage, or perhaps even with physical silver as the volatility continues to be a major issue.
Your capital is at risk
Longer-term, I don’t have any interest in shorting, as I believe that the $16 level underneath is going to be the “floor” in the market. I do like silver, but I also recognize that being overleveraged can be very dangerous in these types of moves. The market is going to be a situation where caution is best advised, but I certainly think that selling is going to be very dangerous.