Silver Price Forecast – Silver Markets Continue to Stabilize

Silver markets have dropped a bit during the course of the trading session on Friday, only to turn around and show signs of life again. By doing so, the market looks as if it is going to continue to defend the $22 handle. The $22 level has been important more than once in the past, so I think this is a very significant area that the market will try to defend. As long as we can stay above the most recent low near the $21.50 level, then I think there is still the possibility of recovery. That being said, it does not mean that it will not be very noisy. After all, silver is an extraordinarily noisy market under the best of circumstances.

SILVER Video 13.12.21

To the downside, if we were to break down below the $21.50 level, then it is likely that we could see this market struggle a bit, perhaps breaking down to the $20 handle. With this being said, the market is more than likely going to continue to see a lot of noisy behavior based upon the US dollar. If the US dollar suddenly spike higher, that might be the straw that breaks the camel’s back in this market. On the other hand, if we turn around a break above the $22.50 level, then it is likely that we could go looking towards the 50 day EMA. The 50 day EMA currently sits at the $23.50 level, which of course would be a very strong move. Regardless, I think we have a lot of choppy behavior in the short term that will cause some issues, especially as liquidity dries up heading into the holidays.

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