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Silver Price Forecast – Silver Markets Attempt to Bounce

By:
Christopher Lewis
Published: Aug 29, 2022, 15:52 GMT+00:00

Silver markets have bounced a bit after initially plunging on Monday, but quite frankly we are at such lows and should not be a huge surprise. The question now is whether or not $18 will hold.

Silver FX Empire

In this article:

Silver Markets Technical Analysis

Silver markets have fallen a bit during the trading session on Monday but then turned around to show signs of life. That being said, the market is likely to see a lot of noisy behavior, and you should also keep in mind that the candlestick that is trying to form does show like it’s a market that could bounce in this general vicinity, especially as the $18 level has been so important. If we stay above the $18 level, then it’s likely that we could see the market trying to reenter a consolidation area with the $20 level above. Furthermore, the 50-Day EMA is also dropping at this point, so it’s obvious to me that could be a bit of a resistance barrier.

Breaking down below the $18 level opens the possibility of a move down to the $16 level, perhaps down to the $15 level. At this point, the market looks as if it’s trying to form some type of double bottom, but if it does not hold, that’s obviously a very bearish signal. The market breaking up of the $20 level opens up the possibility of a threatened $21 level. If we can break above the $21 level, then it’s likely that the $22 level in the 200-day EMA all come into the picture.

At this point, pay close attention to the overall attitude of risk appetite, as the market is going to continue to see a lot of volatility, and therefore silver will struggle to continue rising in an environment that is so volatile, and of course an economy that seems to be slowing down.

Silver Price Forecast Video for 30.08.22

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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