Silver Price forecast for the week of July 17, 2017, Technical Analysis
Silver markets initially fell during the week, but reached a bit of support just above the $15 level. As soft or than anticipated economic numbers came out of the United States on Friday, the market turned around and therefore reached towards the $16 level. It now looks as if the $15 level will be massively supportive, and if we can stay above there I think there is going to be a bit of a “buy on the dips” mentality, so I think that the volatility will continue. I believe that the silver market should continue to be one that is difficult to handle, so having said that I think that perhaps a nonleveraged position might be the best way to approach this market from a longer-term perspective. This is because the volatility will of course cause massive fluctuations in account value.
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The alternate scenario
If we do close below the $15 level, then I think that the market will go looking towards the $13.75 level underneath. That is the alternate scenario, but considering the bounce that we have seen in the $15 region, I suspect that Silver will continue to find buyers in that general vicinity. I think that rallying to higher levels is probably difficult, but perhaps longer-term traders will be looking to start building a position. I think that this is more of an investment rather than a trade, and quite frankly we should pay attention to the US dollar as it has a massive influence on precious metals overall. I believe that the $17 level above will be massively resistive, so if we can clear there, the market should then go to the $18 level next. I believe that it is going to be a lot of choppiness, so with that look for shorter-term trades if you are looking to use a leveraged market.