Silver Price Forecast December 26, 2017, Technical Analysis

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Silver markets shot much higher during the trading session on Friday, as a lack of volume may have been part of the exaggeration, but we clearly have been in an uptrend for some time, and the recent breakout suggests that we are going to find buyers underneath. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:48 PM

The Silver markets went sideways initially during the day on Friday, but then rallied rather significantly, as we touched the $16.40 level. The pullback gives us an opportunity to pick up a little bit of silver on the cheap, and I do believe that the longer-term charts are suggesting that we are going to go back towards the top of the overall consolidation area, meaning that the target is probably the $18.50 level. Don’t get me wrong, it’s not to be easy to get there, and we will obviously have a lot of volatility between now and then. I believe that buying on the dips continues to be the best way going forward in the precious metals, as not only gold but platinum look healthy as well, and that means that we should continue to see an anti-US dollar sentiment.

Currently, I look at the $16 level as the “floor” in the market, but I also recognize that the longer-term traders probably won’t let the market get down there, because they have put so much money back into it. I think that the Silver markets remain in consolidation overall, so I think that short-term traders will continue to benefit from the overall consolidation that we have seen for several months. Pay attention to the US dollar in general, perhaps the US Dollar Index, as this moves in direct opposite correlation to the value the greenback. Beyond that, geopolitical concerns could drive precious metals higher as well.