Silver price kept investors watching in 2017. As usual, Investinghaven has been following and analyzing the Silver (SILVER) price action very closely. It all started with our 2017 Silver price forecast that was featured on Marketwatch in April and later on in July this year.
In April, Investinghaven published the following:
Silver prices continued their downtrend this week. Silver peaked at $18.00 this week, and lost 4 percent as they closed at $17.22. The silver price chart does not looks very constructive at this point. InvestingHaven made the point that the price of silver could have peaked for the year, a not so bullish silver price prediction for the year. However, every price decline always ends with a buying opportunity, so investors with a lot of patience will be rewarded late this year or next year.
“With just two trading days left in April, silver looks as if it peaked for the month at $18.514 an ounce on April 17.”
And it did peak at that level indeed to relatively stabilize for the rest of the year. We still witnessed the occasional and misleading flash crashes and spikes here and there, leading to more confusion among Silver Bulls and Bears.
Our article today will provide our thoughts and observations as to where Silver price is heading and of course, important levels to watch.
Silver Price Action
As indicated by the title, Silver is at the crossroads, meaning it could turn Bullish or Bearish anytime. And because the pattern has been building up for such a long time as shown by the chart below, it is safe to say that the next movement will be a strong and sharp one.
Our next chart shows how silver price is literally at a crossroads, a cross above the 18.80 level will trigger a strong bull market for the rest of the year, whereas a break below the 16 USD level will probably take the price to the bottom of the falling purple channel.
Because of the expected sharp movement that will follow this long time build up, it is important for investors and traders to manage their risk properly. These are cases where it is wiser to buy a bit higher after a confirmation of the move rather than try to anticipate. We should see the confirmation very soon as shown by the chart below.
To conclude, a break above 18 USD and we can see Silver trading around 23 USD. A break below the 16 USD and we can see Silver trade as low as 11 USD. That is how sharp the upcoming movement can be.