Silver Markets Give Up Early Gains

Silver Markets Technical Analysis

Silver markets initially tried to rally during the trading session on Friday but gave up gains just above the crucial $23.50 level. This is an area that has been important more than once, so it does make a certain amount of sense that we would see a reaction. By selling off the way we have, this has made the market look very ugly, and therefore I think silver has further to go to the downside. At this point, it is very likely that we could go down to the major support level underneath.

That major support level is the $22 level, an area that has been important more than once. This is an area that I think needs to hold in order for silver to have any chance at all to recover. The fact that we ended up forming a bit of an inverted hammer for the trading session on Friday does suggest that there is further downside to come, but if we turn around a break above the top of the candlestick, that could have the market reaching the $24 level, maybe even the 200 Day EMA which is just a bit above there.

Because of this, is very likely that we will continue to see a lot of noisy behavior, as the US dollar has been like a wrecking ball against metals, and most other currencies around the world. The market will continue to be one that is jittery, and you need to be cautious about the position size when you are trading silver. This is true anytime, but that is especially true when you have this type of volatility.

Silver Price Forecast Video 02.05.22

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