Silver Markets Hit the Short-term Target

Silver Markets Technical Analysis

Silver markets have rallied rather significantly during trading on Monday to spike high enough to reach the short-term target of $25.50, an area that has been rather noisy. Because of this, it is not a huge surprise to see a major pullback from that area, but it was quite vicious and very quick. This almost certainly had to do with the bond market and yields spiking in America yet again. Nonetheless, there is still a significant amount of upward pressure just underneath, and one would have to respect that. Because of this, if we can break above the top of the candlestick for the trading session on Monday, it would be an explosive signal that we could be going much higher.

Alternately, if we were to break down below the bottom of the candlestick for the session, then we will test the 50 Day EMA at the $24.65 level, and then eventually the 200 Day EMA at the $24.23 level. While I do not expect a major meltdown, the candlestick and the behavior during the session on Monday show just how volatile these markets are going to be.

Algorithmic trading that is based upon interest rates can have an outsized influence on the market at times, betting on higher interest rates in the United States causes metals to fall. That being said, that is not always going to be the case and therefore I think we will continue to see a lot of this noisy behavior. Bits and pieces of volatility will continue to be a major factor in this market, so pay close attention to what is going on in the bond yield area.

Silver Price Forecast Video 12.04.22

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