Silver Price Forecast – Silver Markets Give Up Early Gains

Silver markets have initially shot higher during the trading session on Tuesday but gave back the gains to show signs of hesitation. By doing so, the market looks very likely to continue to see noisy behavior, as silver is a relatively thin market to begin with. The fact that this is Christmas week certainly will do no favors as well, so ultimately, I think this is a situation you need to be very cautious about, but clearly silver does not look like it is ready to take off quite yet.

SILVER Video 22.12.21

If we can break above the top of the candlestick, then it is possible that silver will go looking towards the 50 day EMA, but ultimately the market will be hesitant to take that out. To the downside, the $22 level is significant support, but it has been sliced through recently so we could drop down to the $21.50 level. If we break down below there, then the whole thing falls apart, but I do not see that happening. I think what the price action on Tuesday says more than anything else is that we simply are entering a very quiet time of year, so with that being the case I would not be overly excited one way or the other.

I would keep my position size relatively small, because the lack of liquidity could cause major move suddenly, and therefore you can see a lot of damage done to your account. That being the case, caution is the better part of valor at this time of year, and therefore regardless of what I do next, it is going to be with a small position.

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