Silver Forecast February 5, 2018, Technical Analysis

Silver markets fell significantly on Friday after the jobs number came out of America. We have broken below the $17 level, but it looks as if Silver is trying to make a bit of a stand near the $16.85 level. I think there is support just below, so a bounce from here would not be a huge surprise. · FX Empire

Christopher Lewis

Updated Fri, Feb 2, 2018, 9:36 PM

Silver markets continue to see volatility and breaking below the $17 level after the jobs number came out of the United States would have scared some people. However, there is plenty of support just below, so it’s only a matter of time before we rally. If we can break back above the $17 level, that should be a buy signal, as although the move was very sudden, typically these Friday moves after the jobs announcement are short-lived. Ultimately, I believe that investors are looking to buy the dips, as the US dollar has hammered over the last several months.

If we break down below the $16.75 level, then I will reset my expectations and look for buying opportunities at even lower levels. Ultimately, I believe that the trading conditions favor being patient, and adding slowly to a larger core position. Silver markets are very choppy, and of course very difficult to deal with the times. This is why you have to take most of the leverage out of that position, and therefore taken a lot of the psychological discomfort. If we can break above the $17.25 level, the market will then go much higher.

There are several different factors going on around the world right now, which could drive the value of silver. Geopolitical concerns of course can push up precious metals overall, just as the falling US dollar has. I believe that adding slowly is how I’m going to approach what I think will be a bullish market for 2018.