Silver Price Forecast – Silver markets continue to be range bound below major levels
Silver markets have grounds sideways for some time, over the last several days. The $14.80 level has been a bit of an anchor for price, but above there I see the $15.00 level as being massive resistance. Short-term rallies will of course offer selling opportunities as that is an area of significant resistance. If we can break above the $15.10 level, the market could go much higher. At that point, I would be targeting the $15.25 level next, and then the $15.50 level. However, at this point I suspect that there is probably more likelihood of selling pressure than buying.
Your capital is at risk
Market participants continue to be very skittish, and with the Silver markets being much more volatile than most others, it’s likely that you will need to be very cautious about trading with size. Because of this, Silver markets are best traded in the CFD market from what I can see, unless of course you have the ability to buy physical silver and hang on to it as an investment. As far as leverage is concerned, it’s very dangerous to begin with, but in the silver market it takes on a whole new complexity. With that in mind, you should pay attention to the US dollar and what it is doing overall, using the EUR/USD pair as a bit of a proxy. Ultimately, the US dollar falls in value the Silver markets will rally. Of course, the inverse is true as well.