Silver Crash Price Levels for 2017
Silver Crash!? Is the silver market on the edge of a crash?
The dollar index has reached 13 month lows, you would think that Silver would be reaching 13 month highs, but the silver market instead has shown very little commitment to get silver price out of Bear territory where the sellers are in control.
There is a price divergence on this last move where the large movement in the Dollar Index where there is major weakness has only shown a small recovery on silver. If the dollar strengthens to 50% of the move down, this could put pressure on silver selling and bring silver down to 10.50 and ounce. Smaller recovery of the dollar index could push silver down too. The first major resistance is $15.85 then to 13.85.
This is not a popular out look for the precious metal but looking only at the technical side of this trade it could be a reality as the dollar will find support soon at these levels.
Remember that the pundits in the media are always late in their calls. The dollar will have pull backs, and I am not saying that the dollar won’t go lower, but whether silver will recover and get out of this bear market is questionable.
There are many Silver pundits that are saying this is a bottoming pattern, the longer it stays down here the more likely it is that this will be a continuation pattern and will set an new level of support (down) from the present long term consolidation.
Both Silver and Gold plummeted since Trump came to office. The Dollar strengthened to previous highs and has fallen to lows that have been around for 13 months. You would think that this would have brought silver to previous swing highs, but it has not. It hasn’t even returned to Pre-Trump prices.
This is the divergence that could cause the next silver crash. Just a heads up on this possibility. NOT A CALL TO TRADE.