Silver Price Forecast – Silver Markets Bounce From Significant Support

Silver markets have gone back and forth during the course of the trading session on Friday as the $22 level underneath has offered quite a bit of support. That being the case, the market is likely to continue to see this area as important, but if we break down below the $22 level, it is likely that this market falls apart, and opens up a move towards the $20 level.

SILVER Video 27.09.21

On the other, if we were to turn around and break above the $23 level, then it opens up the possibility of a move towards the $24 level. The $24 level has been an area where we have seen a lot of selling pressure, and therefore it is likely that we would continue to see that as a barrier for the longer-term move. All things been equal, this is a market that is also facing the 50 day EMA as major resistance as well, and therefore I think it is only a matter of time before we see the market selloff on signs of exhaustion.

Pay attention to the US Dollar Index, as the value of the US dollar can have a major influence on what happens next. Keep in mind that the US Dollar Index has a major negative correlation to this market, so if the dollar starts to rally again, that will almost certainly see send the silver market much lower. On the other hand, if the US dollar falls apart, that could send the silver market much higher. All things been equal, there is a lot of choppy volatility in this general vicinity, so you need to be cautious about your position size.

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