Silver Price Forecast – Silver Markets Continue to Find Footing

Silver markets have rallied a bit during the trading session on Monday, to continue showing signs of support underneath at the $22 level. Whether or not we can hang on to this rally is a completely different question, but it should be noted that there is a lot of support not only at the $22 level, but underneath there and extending to the $21.50 level as well. Because of this, any breakdown below that $21.50 level will certainly be paid close attention to by traders around the world. That would almost certainly send in fresh shorts.

SILVER Video 14.12.21

The $22.50 level above is a major resistance barrier, and until we can break above there it is difficult to imagine that silver is going to suddenly take off. Keep in mind that silver also is not just influenced by the US dollar, but it is also influence by the perceived industrial demand. The market of course will be paying close attention to the omicron lockdowns, which could have a major dent on demand outlook.

Furthermore, you need to keep in mind that we are getting close to that time of year where liquidity becomes an issue, as most traders will be paying closer attention to holidays than the markets themselves. Silver tends to be somewhat illiquid to begin with, so this could be a recipe for disaster if you are not careful. Ultimately, I do think this is a market that probably tries to find some type of stability, but that is probably going to look more like consolidation than anything else at this point. With that being said, position sizing will be the most important thing you can do.

Silver markets have rallied a bit during the trading session on Monday, as the $22 level continues to be an important support level.

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