Silver Price Forecast – Silver Markets Get Hammered to Kick Off Year
Silver markets have dropped well over 2% to kick off the trading week on Monday, as we continue to see a lot of downward pressure. The silver market of course is very sensitive to the US dollar, which did get a little bit of a bounce during the day on Monday. We have the 50 day EMA slicing through the body of the candlestick, suggesting that perhaps we are not quite ready to continue going higher off of the bounce that we had. That being said, silver of course is extraordinarily volatile, so therefore you have to be very cautious with your position size anyway.
SILVER Video 04.01.22
To the upside, if we could somehow break above the $23.50 level, then silver probably has a good shot of going towards the 200 day EMA at $24.09. However, it is obvious that every time silver tries to rally it seems as if we are going to continue to see selling pressure. And therefore, I do not think that is going to be easy to do. The market is trying to bounce a bit from the bottom, so it will be interesting to see how this plays out. With this being said, I think that the market will continue to be very noisy, so therefore your position size is the only way you can protect yourself in this type of market. The overall attitude of the market seems to be one of confusion, so the last thing you want to do is put a ton of money into this market in suddenly find yourself on the wrong side of the move.
For a look at all of today’s economic events, check out our economic calendar.