Silver Price Forecast – Silver Markets Give Up Early Gains

Silver markets have rallied significantly during the course of the trading session on Wednesday but has given up gains to form a bit of a shooting star. At this point, it is somewhat obvious that there are sellers above, especially near the $22.75 level. With this being the case, I think that we will continue to see short-term rallies sold into, and I think it is more likely than not that we go looking towards the $22 level again. Keep in mind that liquidity is going to be an issue, which makes silver especially dangerous, as it is a thin market at times anyway.

SILVER Video 23.12.21

With this being said, I am looking to sell silver, but I am not going to do so with a huge position. On the other hand, if we were to break above the $22.80 level, then I will be a buyer, aiming for the 50 day EMA. In general, this is a market that I much more comfortable shorting than buying, but keep in mind that you need to pay close attention to the US dollar, and how that is playing out. The US dollar has a negative correlation to silver, and therefore it makes quite a bit of sense that the US Dollar Index needs to be paid close attention to.

Silver is trying to form some type of basing pattern, but part of what may be causing that is simply the fact that the year is running out of time. The market is likely to see a lot of back and forth, but as I stated before, I think it is probably easier to short than anything else.

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