Silver Price Forecast January 23, 2018, Technical Analysis
Silver markets did very little during the Monday session, as we continue to see the $17 level offer a lot of interest in both directions. Longer-term, I believe that Silver continues to strengthen, because the US dollar has been struggling overall, which of course helps the precious metals sector in general. At this point, if we can rally from here, I think that the $17.40 level will be targeted first, and then eventually we will go looking towards the $18 level again. Otherwise, if we pull back from here I think we could drop as low as $16.25 rather quickly, which should also be supportive, followed of course by the large, round, psychologically significant $16 level.
Your capital is at risk
I believe that the market should continue to be very noisy, as similar typically is. However, I think that the market is deftly skewed to the upside, as it is a situation where as the US dollar falls, people tend to buy silver to protect their purchase power. Beyond that, we also must worry about geopolitical concerns, and that almost always drives precious metals like silver and gold to the upside. I think there is more than enough reason to think that we are only one headline away from a super spike, as it seems the headlines around the world are full of risky propositions. If the marketplace does breakdown, I suggest that you should be looking for buying opportunities at lower levels, as it offers a lot of value. Ultimately, I am bullish of silver, but I also realize that you should be cautious and add slowly.