Silver Price Forecast – Silver markets fall to kick off the week
Silver markets fell a bit during the trading session on Monday, as we continue to see a lot of fear around the world. The $14.30 level underneath of course has a certain amount of psychological and structural support attached to it, along with the $14.35 level. I think at this point, it’s possible that we may see continued volatility and selling on rallies, but I think longer-term traders are most certainly looking to the upside. This is essentially a “to speed” market, meaning that traders are willing to sell silver for the short term, while many of the longer-term and large players are accumulating physical silver. Ultimately, I don’t have any interest in trying to hang on to a longer-term trade in a leveraged instrument, but I do like buying physical silver because I think it’s cheap. However, if we break down below the $14 level it would open the door to the $12 level.
Your capital is at risk
On the upside, I think there is obvious resistance to be found at the $14.50 level and breaking above there could free the market to go to the $14.70 level over the next couple of sessions. Silver is almost always volatile anyway, so the fact that it is acting so choppy and negative over the last several days isn’t much of a surprise. Pay attention to the US dollar, it will have a significant effect on silver itself, so as it rises I believe that more sellers will come into this silver market and start shorting again.