Silver Price Forecast and Preview for the upcoming week.
Looking forward to the Week of July 30, 2018 and the month of August 2018 in this Silver Price Forecast. Silver has taken a beating in price since the post-2011 Commodity Bust that has coincided with the rise of cryptocurrencies. Is a turnaround on the horizon for the precious metal that is rather essential in modern technology? Will the conditions continue in the same direction making it cheaper for people to purchase bullion or their own share of bullion in a vault that can be exchanged as an alternative to cryptocurrency? The charts may provide an idea of conditions during the lowest volume period of the trading year to set up an action packed September and 4th Quarter of 2018.
Silver Price Forecast on a Daily Chart
There is a very large Demand Zone stemming from brief Flash Crash on Silver. What is evident is that this Demand Zone of Support after being teased in December 2017, but never closed within ended up rejecting the price back upward to help form the tested Supply Zone of Resistance. This Supply Zone was twice tested and rejected the price rather immediately as the price was never closed or opened during the last two efforts to breach the zone. The rejections were both quite strong. $17.30 is a clear point of Resistance.
However, there are two fresh zones of resistance that have formed in just over the past month. Their strength is unknown since they are tested, but they pose the biggest threat to the bull run for Silver on a technical basis in the near-term. The Demand Zone Top, which is $15.666 has been an obstacle in the past two weeks as the price is currently drowning in the Demand Zone without any sort of an effort to push it out one way or another.
The MACD is finally starting to show signs of a possible bullish turnaround, but given that the Demand Zone is weaker than it was back in December 2017, it remains questionable how strong of a spring this Zone of Support can provide.
RSI also points to a possible bullish comeback as the previous time that the RSI went below 30, the price made a bullish move. The RSI came out of the oversold zone on July 20, 2018, but there has been no strong candle to take it out of the Demand Zone unlike December 2017.
Silver Price Forecast on a 4 Hour Chart
The price remains drowning in the Demand Zone. The MACD is also in a flat place. The price still remains along the 48 period Simple Moving Average.
The RSI is teasing along the 50 mark and whether the price rises above the 120 SMA.
Silver Price Forecast on a 1 Hour Chart
The $15.30 to $15.39 price point is a Support Zone. Perhaps a more significant Support Zone lurks below starting at $15.26. The Resistance above is formed by a pair of Supply Zones. It is fresh and untested, it was teased though. With the 48 and 120 Simple Moving Averages appearing to have another crossover rather soon and the candle body of the last hour of trading on Friday containing both, there’s a possibility for a downward move or a whipsaw.
Conditions are not overbought nor oversold, but they certainly lend themselves to a flatter trading environment.
Takeaways for the Silver Price Forecast
The price would have to escape the Demand Zone on the Daily Chart to even consider a bullish take. The Simple Moving Averages on both the 4 Hour and 1 Hour Charts are pointing toward potential bearishness down the road. However, it does seem like the market is generally flat and any sort of bullish momentum could potentially be stifled. The most logical expectation is some sort of a minor upward push that will be followed by a return to bearish pressure.