Silver Markets Give Up Early Gains

Silver Markets Technical Analysis

Silver markets initially shot higher at the open in the futures market, and then rallied to reach the $23.35 level. However, we have started to pull back a bit from that level, just as we had done so many times previously. The candlestick looks as if it is suggesting that we could drop down to the $22 level again, and an area that is major support. This does make a certain amount of sense considering that the US dollar has rallied quite drastically, especially after Jerome Powell has essentially promised to raise interest rates by 50 basis points over the next couple of meetings.

On the other hand, if we were to break above the top of the candlestick for the trading session on Thursday, that would be a bullish sign, but I also see multiple areas of resistance that extends all the way to the $24 level. It looks as if the momentum is starting to fail a bit, so a pullback makes quite a bit of sense.

At this point, I am paying more attention to the US Dollar index than anything else, as it has such a strong negative correlation to silver. Even if we do rally a bit, this has been nothing short of a catastrophic collapse down to the bottom of the range, so therefore I do not necessarily think the buyers are suddenly going to turn things around and less something changes quite drastic in the minds of traders. If you are looking for safety via commodities, you have a much better chance of finding it in the gold market, because if we do get an economic slowdown, demand for silver will start to drop again.

Silver Price Forecast Video 06.05.22

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