Silver Price Forecast July 12, 2017, Technical Analysis

Silver markets initially dipped on Tuesday, but found support near the $15.40 level, and then bounced even higher. The market looks as if it is trying to reach towards the $16 level, and with comments coming out of Federal Reserve member Harker suggesting that slowing inflation gives him pause on raising interest rates, the market found buyers for precious metals. Remember, as the Federal Reserve raising interest rates, it tends to work against the value of precious metals, and that has been a major driver of the downtrend. It’s far too early to suggest that the trend is changing, but it looks as if the buyers are starting to get involved. The $16 level should be a formidable barrier though, so I think that it’s likely we will see a bit of a fight in that area. Market volatility should continue to be commonplace in this market, but I think that we may make the attempt to reach the psychologically significant $16 handle.

Continued volatility.

I don’t really have a strategy for the market at the moment, but I do like the idea of selling exhaustion near $16. It makes a lot of sense, as it is an obvious and important level. In fact, I will probably step on the sidelines and wait for that obvious trade. Ultimately, this is a market that will find a lot of noise, but keep in mind the biggest problem with the silver market is that it behaves like gold, but is much less liquid. This makes for more choppy and erratic movements, so pay attention to the yellow metal to get an idea as to where this one might be heading. I believe longer-term we are still looking at a downtrend but we may get a little bit of bullish pressure in the meantime.

SILVER Video 12.7.17