Silver Price Forecast – Silver Markets Continue to Find Support Just Below

Silver markets have gapped higher to kick off the trading session but then started selling almost immediately. This being the case, the market looks as if we are going to continue to trust the $22 level, but at this point in time it is very likely that the $22 level will continue to hold the market up. This is important because it has been so supportive of the last several months. That being said, the market is likely to continue to see that area offer a certain amount of buying pressure, but if we were to sustain a move below there, it is very likely that we could break down rather significantly.

SILVER Video 07.12.21

To the upside, if we can break above the top of the candlestick then it is likely we go looking towards the $23 level, maybe even the $23.50 level. The 50 day EMA sits at the $23.70 handle and is dropping lower. Because of this, the market is likely to see plenty of selling pressure on a move to the upside. Quite frankly, the US dollar is highly negatively correlated to the market, so we should pay close attention to whether or not the greenback is strengthening. All things been equal, it looks like commodities in general are starting to struggle, and silver of course is one of the most volatile major commodities out there.

At this point in time, I think that rallies will continue to be shorting opportunities, on signs of exhaustion. However, in the short term it certainly looks as if the $22 level is trying to hold the market up and therefore it should be noted on your chart.

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