Silver Markets Show Hesitation for the Week

Silver Weekly Technical Analysis

Silver markets have rallied during most of the week but gave back some of the extended gains as it looks like it is going to be more of a fight to the upside. The markets continue to be very noisy, but that is nothing new for silver. Furthermore, you should keep in mind that the economic landscape continues to be dicey at best, and silver is a way to play potential fear, perhaps even inflation concerns. That being said, I do expect is going to be a big fight on the way to the upside but having said that I do believe that dips will more than likely be bought into.

Underneath, the $24.50 level is more likely than not going to be supported, so if we break down below there it could change a lot of things. At this point, I do believe that we are simply going to use $25.50 as a focal point, perhaps as “fair value” until we can start to rally again. Keep an eye on the US Dollar Index, as it does have a negative correlation in general, but both can rise in a safety bid.

Gold has a nice correlation most of the time as well, although silver has the added bonus of being an industrial metal. As we continue to try to open up the economy, the idea is of course that there will be more silver needed. The $28 level above is a hard ceiling though, so is going to be difficult to break above there. If we ever do, then the $30 level would be the next target.

SILVER Weekly Technical Analysis Video 28.03.22

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