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Silver Price Forecast – Silver Markets Continue to Build Basing Pattern

By:
Christopher Lewis
Published: Dec 8, 2021, 16:43 UTC

Silver markets have stabilized near the $22.50 level again, as we continue to see a lot of noisy behavior just above the $22 level. Will silver recover?

Silver Price Forecast – Silver Markets Continue to Build Basing Pattern

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Silver markets have been a bit noisy during the trading session on Wednesday as we continue to consolidate just above the $22 level. The $22 level has been important more than once, so it should not be a huge surprise to see that it has offered a bit of support. With this being the case, the market is very likely to continue favoring buying on the dips in the short term, but whether or not it can hang on to it longer term is a completely different question. That being said, I think this is a market that will eventually have to come to terms with whether or not we are turning things around, but in the short term it looks like it is content to go sideways.

SILVER Video 09.12.21

If we were to break down below the most recent low, which was just below the $22 level, then it opens up significant selling, perhaps down to the $20 level underneath. Obviously, that would signify even more weakness but at this point in time it looks like the selling has settled. The question now is whether or not we can hang on. If we can, then overtaken the $23 level would have to be the first step. Pay attention to the US dollar, because it does have a major influence on this market, and it is worth noting that the US dollar has slowed its strengthening just a bit over the last couple of days as well. This might help silver, but it needs to prove itself before I would put any money to work here. Ultimately, this is a market that I think will continue to be noisy, but I think it does favor a bit of a bounce. All it needs is a bit of a boost.

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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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