Silver Price Forecast – Silver Markets Bounce From Crucial $22 Level

Silver markets have initially fallen during the trading session on Friday to reach out towards the $22 level, an area that has been very important. That being said, the market is likely to continue to see this area as support, and I also believe that the market is likely to see support extending all the way down to the $21.50 level, due to the fact that we have already tested this area couple of times. The fact that we ended up bouncing enough to form a little bit of a hammer does suggest that we could go higher, and perhaps bounce towards the 50 day EMA.

SILVER Video 10.01.22

The 50 day EMA currently sits at the $23.06 level and is starting to drop down towards the overall consolidation area that we have been banging around in. If we were to take out the 50 day EMA to the upside, then the market is likely to go chasing the $23.50 level, an area that has been rather resistive. Pay close attention to the US Dollar cap Index, because it does have a huge negative correlation to this market and of course can throw the silver market around quite drastically.

Quite frankly, one of the biggest problems that we have had in the silver market has been due to the idea that the Federal Reserve is raising interest rates, which of course silver is highly sensitive to. The relatively tight range on Friday was good news for silver buyers, due to the fact that it shows the market stabilizing and calming down after what had been a huge move lower. Ultimately, this is a market that I think continues to see noisy behavior.

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