Silver Prices Forecast May 16, 2017, Technical Analysis

Silver markets exploded to the upside during the day on Monday, breaking above the $16.50 level. Because of this, I believe that the pullback that is presenting itself later in the day suggests that there are buyers underneath. I believe that a supportive candle or a bounce from the $16.50 level would be an excellent opportunity to go long of a market that seems to be trying to find its footing. When you look at the longer-term charts, there is a significant uptrend line near the $16 level that has held. That of course offers a longer-term “buy-and-hold” type of situation, if you can deal with the volatility that almost undoubtedly will appear when trading Silver.

Follow Gold

Gold markets of course offer a bit of direction as well, so if the gold markets rally, the silver market should as well. This being the case, it’s likely that precious metals will do the usual moving together that we have seen, and could be influenced by the US dollar in general. I believe that the US dollar continues to be one of the main factors when it comes to precious metals, and of course the interest rates rising. Also, you have headline risks and geopolitical events they can influence how precious metals behave. The market has recently seen the major hourly moving averages cross to the upside, and therefore I think we are starting to build a reasonable amount of bullish pressure.

SILVER Video 16.5.17