Silver Price Forecast September 25, 2017, Technical Analysis

New York (Sept 23)  Silver markets initially tried to rally during the session on Friday, but find the $17 level to be a bit too resistive. We have seen a massive selloff as of late, and I think that might continue to be the case going forward. I'm not looking for a complete meltdown, I believe that the $16 level below will be very supportive based upon the longer-term charts. I think that we are going towards the bottom of the recent consolidation which of course facilitates a move to the $16 level, and I believe it is a very natural function of a range bound market. I do like buying silver, but I like it in the physical form, because the leverage can be so dangerous. At this point, I believe in selling and have no interest in buying. I don't know when this will change, but I suspect it will be somewhere closer to the $16 handle.

Federal Reserve

The Federal Reserve tightening its balance sheet of course works in favor the US dollar, and that works against silver. You will hear a lot of people talk about how there is more demand for silver than supply coming out of the ground, but quite frankly that's done nothing to lift this market. That's a story that I've heard for years, and I am can't see how it has affected anything. So be careful when you hear the sales pitches and simply follow the chart. Right now, the charts are telling you this is more likely to go lower, and at the end of the day that's all that truly matters. If the US dollar continues to show signs of strength overall, that will work against silver going forward, and there's not much you can do about it.

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