Silver Price Forecast – Silver Markets Continue to Decay

Silver markets have suffered a bit at the hands of the US dollar during the trading session on Friday, as we continue to see this market slump. At this point, the $23 level has been rather important, but now it looks as if it is starting to get worked against. If we can break down below that level, then it is likely that we go looking towards the lows from that plunging candle that reached as low as $22. If we can break down below there, then the market is likely to go looking towards the $20 level underneath, which is the next large, round, psychologically significant figure.

SILVER Video 23.08.21

On the other hand, if we can turn around and break above the $24 level, that would obviously be a very bullish sign, perhaps opening up the possibility of a move towards the $25 level. That being said though, we also have the so-called “death cross” that has formed with the 50 day EMA slicing through the 200 day EMA. That is a longer-term bearish signal, and a lot of longer-term traders will be shorting the market because of it. Nonetheless, this is a market that I think will continue to move on the whims of the US Dollar Index, in an inverse correlation as per usual.

The market has been slumping lower, and now it looks like we are ready to continue to go to the downside. If we did break above the $24 level, I think it would take a major change in the attitude of the US dollar. We will have to wait and see, but if that does in fact happen then this is a market that will probably take off to the upside. That being said, we certainly look “risk off” at the moment.

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