Silver Price Forecast – Silver Markets Finding Support

Silver markets initially fell during the course of the trading session on Tuesday but continue to find buyers underneath near the $22.65 level. Because of this we ended up forming a bit of a hammer, as we race towards the 50 day EMA. The 50 day EMA above is flattening out near the $23.16 level, and therefore could offer a little bit of a short-term target and/or resistance. Nonetheless, I think we probably slice through there and go looking towards the $23.50 level again, which is a significant amount of resistance. It is an area that has been visited multiple times in the last couple of weeks, so it certainly makes sense that we could go looking towards the area as a bit of a magnet.

SILVER Video 05.01.22

If we can break above there, then silver can start to take off again, but it will obviously take a significant amount of resistance to make that happen. Ultimately, I think that market participants will continue to look at this through the prism of a “buy on the dips attitude”, although it seems as if we are struggling to pick up any type of momentum. Nonetheless, I think we get a lot of noisy behavior and of course you have to keep in the back of your head that the silver market in the US dollar index tend to have a bit of a negative correlation. With that in mind, you should keep one eye on one chart, and the other eye on the other. That being said, it certainly looks as if we are trying to continue to build a bit of a base, but I also recognize that market participants continue to see this as a noisy place to be.

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