Weekly Silver Price Forecast – Silver Markets Remain Bearish

Initially, the silver market attempted to advance, but encountered resistance at the key downtrend line.

Initially, silver attempted to rise during the course of the week, but the same downtrend line continues to act as a difficult barrier. As the market has been hammered by a strengthening U.S. currency, I believe there will continue to be a significant amount of bearish pressure. In this environment, I feel it is likely only a matter of time before the price reaches $18. In light of the fact that both interest rates and the US currency operate against any form of optimism, I feel that silver has only one path in the intermediate term.

In addition, you must bear in mind that silver is both an industrial and a precious metal, so you must be aware that the overall “slant” of the market is downward, so this would be a continuation of what we have already observed. At this time, I feel it is more likely than not that we will continue to observe a “fade the rally” strategy in this market.

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I am aware that markets will continue to exhibit a great deal of erratic behavior, but silver is especially susceptible to this. Due to this, I believe that it would be prudent to sell short-term rallies on smaller time frames, as the weekly chart may not provide sufficient “runway.” I believe we will eventually fall below the $18 level and begin to investigate the $15 level. This does not imply that it will occur immediately, but it is highly probable at this time.

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