Silver Price forecast for the week of February 19, 2018, Technical Analysis

Silver markets were positive during the week, breaking towards the $17.00 level. There is a significant amount of resistance just above, so I think that we are in for some choppy trading action over the next several weeks. · FX Empire

Christopher Lewis

Updated Sat, Feb 17, 2018, 12:43 AM

The Silver markets as you can see have rallied a bit during the week, reaching towards the $17 level, which is the beginning of significant resistance at the $17.50 level. If we can break above the $17.50 level, then we should go to the $18 level, and then the $18.50 level. The markets continue to be relatively flat for the longer-term trader, but it does represent a nice opportunity for short-term traders to trade a range bound scenario. I think that short-term traders will probably continue to be attracted to the silver market, while longer-term traders will be looking at this as an investment measured in decades.

I do believe that eventually Silver will break out above the $20 level, but I would anticipate that it is going to take a lot of momentum building, so adding slowly for the longer-term trader is probably the best way to go. This lends itself for trading either physical silver, or an ETF like the SLV, as leverage will kill you in a choppy market. That being said, I think that longer-term investors are stacking silver, this is essentially when “smart money” is involved, when we are accumulating. The US dollar should continue to soften over the longer term from everything I see, and that of course will put bullish pressure on precious metals in general. I believe that the “floor” in the market is somewhere near the $15 level, so keep that in mind. I believe that physical silver is one of the best investments you can do longer-term, that looking for gains immediately is a bit of a farce.