Silver Price Forecast January 18, 2018, Technical Analysis
Silver markets initially rallied during the trading session on Wednesday, reaching as high as $17.25 during trading, but you can see that we pulled back to the $17 handle, an area that has previously been resistance and should now be supportive. I think that the market will continue to be very noisy, because quite frankly there’s a lot of concern out there when it comes to various currencies around the world. Overall, I am a buyer of dips, and the $17 level makes a lot of sense for potential buying to occur. If we were to break down below there, then we “reset” and go towards the $16.80 level.
Your capital is at risk
Ultimately, the market could go even higher, and I think that if you are cautious enough you can start to build a position just as you have been doing over the last few weeks. I think that the $17.50 level is the first resistance barrier, but ultimately the $18 level is a longer-term target, with the $18.50 level been even more important. A break above that level has the market breaking above the top of an overall consolidation, so therefore it would be a longer-term “buy-and-hold” situation. I like this market, but I also recognize that there are a lot of concerns out there and of course volatility. Selling isn’t much of a thought until we break down below the $16.50 level. Expect noise, but overall I expect buyers.