Silver Price Forecast – Silver Markets Get Hammered
Silver markets have gotten absolutely hammered during the trading session for a loss of almost 5% as the US dollar skyrocketed during the trading session. That being said, we are also below the $23 level, which is an area that we have been paying attention to more than once, so it is interesting that we have broken down through there. That is of course a very negative turn of events, and I think it is probably only a matter of time before we continue lower. After all, short-term rallies will have to face a lot of selling pressure that we have just seen.
SILVER Video 17.09.21
The $24 level above is significant resistance, as it has been important more than once. That being said, this big type of candlestick very rarely happens in a vacuum, as retail sales have outperformed in the United States. That suggests that the US dollar could continue to strengthen, so at this point in time we should go much lower. Quite frankly, it is not until we break above the $24 level on a daily close that I would be thinking about getting long. The silver market is especially volatile, so the fact that the dollar took off will weigh upon the market much more than its cousin gold.
At this point, it would not surprise me at all to see the silver market go looking towards the $20 level. That obviously would attract a lot of attention from a headline standpoint, so I think at that point in time the market would have to reevaluate its overall trend. All things been equal, I think you look for signs of exhaustion on short-term charts to get short yet again.
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