Silver Markets Find Support for the Week

Silver Weekly Technical Analysis

Silver markets have gone back and forth during the course of the week, initially falling to reach the 50 Week EMA. By finding support there, the market has shown itself to be supported at an important level, and therefore it looks like we are trying to turn things around and go looking to the $25 level, perhaps even the $25.50 level. Breaking above that level then allows the market to reach the $26 level, and maybe even the $27 level. Keep in mind that this pair is highly negatively correlated to the US Dollar Index.

Looking at this chart, it looks very likely that we are about to see a move higher, but if we were to turn around a break down below the bottom of the candlestick, then we could open up the possibility of silver selling off quite drastically. At this point, the market is likely to drop to the $23 level, possibly even the $22 level after that.

Ultimately, this is a market that I think continues to find plenty of value, and therefore it is likely to go higher, especially if we continue to worry about inflation. Silver is a hedge against inflation at times, so it is worth paying attention to it. However, there are also concerns about the industrial demand, as the reopening trade certainly seems to favor the idea of metals being necessary. This at the moment looks to be a “buy on the dip” type of market, and I will continue to be so. All things being equal, I do like silver, but also recognize that we are going to have a noisy few weeks.

Silver Price Forecast Video 11.04.22

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