Silver Price Forecast – Silver Markets Bounce Off of Major Support Level Again
Silver markets have fallen a bit during the trading session on Tuesday to reach out towards the $22 level yet again, an area that has been significant support more than once. By bouncing how we have, that is a somewhat positive sign, but it also looks as if we are working our way down to that level over the longer term, and we will more than likely break through it. Remember, the silver market will continue to struggle as long as the US dollar is strengthening, and therefore you have to pay close attention to the US Dollar Index. As the dollar rises, silver falls apart quite rapidly under most circumstances.
SILVER Video 29.09.21
The $23 level above is significant resistance, and therefore it is going to take a certain amount of momentum to turn this thing around and make silver take off to the upside. The 50 day EMA would be the next target, but quite frankly it is very difficult to get excited about owning silver at the moment, because the yields in America are trending higher, which of course works against the value of precious metals in general.
The silver markets are much more sensitive than gold, so it does make sense that silver breaking down below the $22 level happens eventually. Once it does, I feel that the bottom in this market will probably fall apart, perhaps sending the market down to the $20 level. Expect a lot of noisy volatility, but I am still looking for short-term selling opportunities along the way, fading rallies that show signs of exhaustion on shorter-term charts. Keep an eye on your position size, but if we get down below the $22 level on going to be aggressive.
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