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Silver Price Forecast – Silver Markets Plunge

By:
Christopher Lewis
Published: Aug 19, 2022, 15:59 GMT+00:00

Silver markets have fallen rather hard during the trading session on Friday to pierce the $19.00 level. That being said, it looks like we have further to go.

Silver bullion FX Empire

In this article:

Silver Markets Technical Analysis

It’s worth noting that there’s a gap just below the current pricing of silver, at least in the futures market. Because of this, it’s not overly surprising that the market has fallen down in this area, looking to fill a major gap from several weeks ago. At this point, it looks like we will fill the gap rather soon, perhaps down to the $18.50 level. If we break it down below there, then the $18 level is also important, as it is a large, round, psychologically significant figure, and an area where we have recently seen a lot of support.

If we rally from here, I think it’s probably only a matter of time before we see some type of exhaustion above, especially near the $20.00 level. This is a market that has been very noisy for some time, but now it looks like the interest rate situation and the strengthening US dollar is finally coming into the mix yet again, to pummel not only silver but its cousin, gold. Ultimately, this is a market that I think continues to see a lot of downward pressure, and if we can break down below the $18.00 level, that probably kicks off the next great leg lower. In that scenario, it’s very possible that we could see silver get absolutely smoked.

As far as buying is concerned, we need to break the structure above the $20.88 level to be bullish, and even then I think it’s a bit of a fight at this point. Anything above the $22 level would be a major shift in overall trend and attitude.

Silver Price Forecast Video for 22.08.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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