Silver Markets Challenge Highs From the Previous Session

Silver Markets Technical Analysis

Silver markets have gapped higher to kick off the trading session on Tuesday and then rallied all the way to the top of the Monday session. We have pulled back just a little bit from that area, which is essentially the $25.50 level. This is an area that I think continues to be of interest, as we have seen support and resistance at that level. Pullbacks at this point should offer buying opportunities going forward, as long as we can stay above the $25 level, or perhaps even the 50 Day EMA.

Silver has a negative correlation to the US Dollar Index, so you should pay attention to what the US dollar is doing during the day. Ultimately, if the US dollar starts to fall, that might help silver go higher, and at this point, that does not look as likely as a pullback.

When you look at the chart, you can make an argument for a bullish flag, but we need to break out rather soon before that happens. Pullbacks will continue to see a lot of noise, so I think it is a lot of back and forth going forward, but if we were to slice through the 200 Day EMA, that could open up a big move below the $24 level, perhaps even opening up silver to drop to the $22 level. Ultimately, that is going to take a lot of negativity, so I think we are more likely than not going to go sideways over the next several weeks, so I do not like the idea of hanging on for big positions and longer-term trades at this point.

Silver Price Forecast Video 13.04.22

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