Silver Price forecast for the week of February 12, 2018, Technical Analysis

The Silver markets continue to show weakness during the previous week as we initially tried to rally but found the $17 level to be too much. We have now formed a bit of a shooting star, so this suggests that we are going lower. · FX Empire

Christopher Lewis

Updated Fri, Feb 9, 2018, 10:04 PM

Silver markets continue to struggle with a stronger US dollar, and it’s likely that we are going to go looking towards the $15.50 level underneath. That’s an area that should be supportive, as it has been in the past, so I think if you are patient enough you should get a buying opportunity. It doesn’t mean they should jump in right away, but I think that the patient trader will be able to take advantage of a value area, especially near the $15.50 level. Volume is picking up, so it’ll be interesting to see how that plays out, but I think until we break down below the bottom of the range, you should assume that the range is still in effect.

I believe that eventually we will bounce from the $15.50 level and reach towards the $17.70 level again, as we have over the last couple of years. I think that if we did breakdown below the $15 level, that would be extraordinarily negative for silver, but right now I suspect that we won’t see that. If we were to turn around and break above $18, then it becomes more of a buy-and-hold situation, but it will take a lot of momentum and of course work to get above that area. Because of this, I think that you need to be patient, or if you cannot be, perhaps you should be trading in more of a range bound short-term strategy. Longer-term silver traders tend to buy-and-hold for the future, one of my favorite things to do with physical metal.