Silver Price forecast for the week of December 4, 2017, Technical Analysis

Silver markets continue to be very volatile, but we have seen quite a bit of negative pressure over the last several sessions. We are now testing significant support. · FX Empire

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:37 PM

Silver markets continue to be very noisy, as we initially tried to rally during the week but found the area above the $17 level to be far too resistive to continue to go higher. The market rolled over and reached below the $16.50 level, as it is a support of level that the market has been paying attention to. It’s likely that the market will find buyers eventually, perhaps near the $16.00 level, which has been important in the past as well and is also near the outer band of the Bollinger Bands indicator. I think that the market will continue to knock around quite significantly, and because of this I should point out that the $17.00 level is essentially fair value in the market, so I think we continue to go back and forth towards that area, and if we get a bit too far from that level, it’s likely that we will head back there.

Although it does look a little bit bearish after this past week, longer-term, I see nothing on this chart that tells me that we are getting out of the overall range, between the $16 level on the extreme bottom, and the $18 level on the top. Until something changes fundamentally, I believe Silver continues to be very choppy and range bound, so therefore it’s difficult to imagine a scenario where I would be willing to hang onto a trade for too long, so I think longer-term traders are going to continue to favor the buying and holding onto physical silver, not necessarily leveraged markets.