Silver Weekly Price Forecast – Silver markets go nowhere for the week
Silver markets went back and forth during the week, forming a very neutral candle stick, with the $14 level showing signs of being a very important on longer-term charts. Ultimately, I think that the market breaking through the $14 level is a significant sell signal, which would probably be coincide with some type of US dollar strength. Otherwise, if we can break above the top of the candle stick for the week, that might be an opportunity to buy silver at a very cheap level for the longer-term move.
I have been buying physical silver for the last $1.50, just a couple ounces at a time. I think at this point, the market has a significant amount of support in this area, and the $14 level has been important in the past. If we break down below there, the next major support level is probably closer to the $12 level. I think that you should watch the EUR/USD pair, because it does give us an idea of overall US dollar strength if you do not have access to the US Dollar Index live charts. It doesn’t really matter though, because the Euro is such a large part of that basket of currencies that it’s essentially the same thing.
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I would start out small to the upside, but I would become much more aggressive to the downside. I think at this point we are likely to see a significant move sooner or later, and I believe breaking this candle in one direction or the other will be the signal you need.