Silver Price Forecast – Silver Has Another Volatile Session
Silver Markets Technical Analysis
Silver markets initially fell during the trading session on Monday, but did find buyers underneath. At this point, I think the market is going to continue to be very volatile, and therefore you need to be very cautious with your position size, and getting too aggressive in any particular bounce. In fact, I think that this is a “fade the rally” type of situation and therefore it’s likely that we will eventually break down to the $18 level. The $18 level is a large, round, psychologically significant figure, and an area where we bounce from previously.
If we do break below the $18 level, then it’s very likely that we could see this market reach down to the $15 level, maybe even the $12 level. The 50-Day EMA sits near the $19.42 level, and is flattening out. This could offer a little bit of a short-term ceiling, especially as the $20.00 level just above will and of course the downtrend line comes into the picture as well.
Ultimately, this is a market that I think given enough time probably allows for significant downside, mainly due to the fact that there is a huge negative correlation between silver and the US dollar. The US dollar is showing no real signs of letting up anytime soon, so keep that in mind.
Demand for silver is almost certainly going to continue falling, as it is an industrial metal, and we are about to see one of the nastiest slowdowns that most of us will ever experience. As long as silver is so highly levered to growth, I don’t see how we rally for any significant amount of time.
Silver Price Forecast Video for 27.09.22
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