Silver Markets Continue to Build a Supporting Base

Silver Markets Technical Analysis

Silver markets have fallen a bit during the trading session on Thursday as we continue to bounce around between the 50 Day EMA above, and the 200 Day EMA underneath. Typically, when you see the market bounce around between those two moving averages, you are in the midst of a “squeeze” that could cause a bigger move. If we break above the 50 Day EMA, it is very likely that we will try to go looking to the $25 level as a target, perhaps even the $25.50 level.

Alternately, if the market were to break down below the $24 level, it would not only break through the 200 Day EMA. This of course would be a very negative turn of events and could send this market much lower, perhaps reaching the $23 level next, possibly even the $22 level after that. In that scenario, the market would have given up the upward trend, and the pullback will have been more of a selloff.

Ultimately, you should pay close attention to the US Dollar Index, as it has a strong negative correlation to the silver market. Silver does tend to be rather volatile overall, so you should be cautious with your position size, and therefore you should pay close attention to it. Ultimately, this is a market that is trying to figure out whether or not it is going to continue to go higher, or if it is going to continue to bounce around in this general vicinity. All things been equal, silver is either getting ready to bounce to the upside, or the pullback will turn into a major breakdown of the uptrend.

Silver Price Forecast Video 08.04.22

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