Silver Markets Continue to Plunge Lower During the Week

Silver Weekly Technical Analysis

Silver markets have fallen rather hard to reach the $23 level, an area that is important on short-term charts, but as you can see on the weekly chart, not necessarily a major area of interest. The $22 level has been support more than once, and it would make quite a bit of sense to see the market find buyers in that area. Furthermore, the 200 Week EMA is sitting just below there, so I think it all comes together quite nicely for support.

If we were to break down below the 200 Week EMA, then the market is very likely to go looking to the $20 level. The candlestick for the week and the one before it both show quite a bit of negativity, so I would anticipate that this next week could show some selling pressure. Whether or not we can break down is a completely different question, but I do think we are going to test that level sooner or later. Short-term rallies more likely than not will be sold into, especially near the $24 level.

Pay close attention to the US dollar, because it does have a massive negative correlation to the market, so I think a lot of this will come down to what happens in the US Dollar Index. At this point, silver is underperforming gold, so it could drag gold right down with it, something that is also worth paying attention to. The next week or two is going to be very crucial as to where we go longer term, so pay attention, it could give you a bit of a “heads up.”

Silver Price Forecast Video 02.05.22

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