Silver Price Forecast February 12, 2018, Technical Analysis

Silver markets fell again during the trading session on Friday, as we reached towards the $16.25 level. We continue to see US dollar strength, and this of course continues to hurt precious metals, so keep in mind that paying attention to the US Dollar Index is paramount. · FX Empire

Christopher Lewis

Updated Fri, Feb 9, 2018, 9:33 PM

Silver markets rolled over during the trading session on Friday, breaking down towards the $16.25 level. If we can break down below there, the market will probably go down to the $16 level next. A breakdown below that level sends the market looking for the $15.75 level, and then eventually a massive support level at the $15.50 level. Alternately, if we can rally above the $16.50 level, I think the market probably goes looking towards $17 next. Longer-term, I am bullish on silver, but I recognize that the volatility is mainly due to the US dollar strengthening in a bit of a “risk off” type of situation that we see in the other markets.

Silver markets are notoriously volatile, so I would be very cautious about jumping in with both feet, so adding slowly to a position that works out in your favor is the best way to deal with this type of market as it tends to be extraordinarily dangerous at times. With the overall fear that we see in the marketplace, it would make sense that the markets will be very loud and difficult. I believe that physical silver continues to be a viable trade for those who are looking to build wealth over time, but for short-term traders, we continue to see dangerous choppiness. If we can get some type of clarity, I will be the first person to tell you when it’s time to get heavily involved, but right now I would tread lightly.