Silver Price Forecast January 19, 2018, Technical Analysis
Silver markets rallied slightly during the day on Thursday, breaking above the $17 level. By doing so, it shows that there is at least some support in this area, as I would have anticipated. However, there are a lot of concerns about the risk appetite of traders after the crypto currency bloodbath that we have seen. Ultimately, this market will eventually find its way higher, if nothing else but for a haven. I believe that if we do break down, it’s not until we get below the $16.75 level that we can be concerned with this market for any length of time.
I believe that the market will be very choppy, so I would add slowly to the upside. Short-term pullbacks could give you an opportunity, but be very cautious, and use small amounts as it allows us to take advantage of the overall uptrend, but not get caught up in the dangerous volatility that will undoubtedly be part of this market. Silver tends to be volatile anyway, so if you have any experience in this market, you should know that already.
Your capital is at risk
The alternate scenario of course is to buy physical silver, assuming that you can get a decent price. It’s a longer-term investment when you trade like that, but I do believe in the efficacy of the silver rally, and that although we are at historically cheap levels, it may take a while to get there so there’s no need to jump in with both feet.