Silver Price Forecast – Silver Attempts to Find a Pulse

Silver Markets Technical Analysis

Silver markets rallied a bit during the trading session on Thursday but it looks as if this is a bounce just waiting to be shorted into. The $20 level above should be a psychologically and structurally important level, based upon previous price action. Even if we break above there, the $21 level will more likely than not end up being a resistant barrier as well. That being said, it’s probably only a matter of time before you can jump in and short this market.

Keep in mind that the fundamental situation has not changed, and the Federal Reserve is more likely than not going to keep the market on edge due to its tightening policy. However, the market has broken down quite significantly and therefore it’s likely that we need to see a certain amount of a rebound, but that rebound should be short-lived at best, as the demand for silver should continue to drop right along with other commodities. However, we are oversold so I do think that the short-term path is probably higher, but I would stress the phrase “short-term.”

It is not until we break above the $22.50 level that I would suggest that the trend has changed, or we would need to see the Federal Reserve change its attitude when it comes to tightening. On the other hand, if we were to break down below the bottom of the hammer from the trading session on Wednesday, it’s possible that we could drop down to the $18 level. In general, this is a market that should continue to struggle quite a bit going forward as the US dollar is like a wrecking ball.

Silver Price Forecast Video for 08.07.22

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