Silver Price Forecast – Silver Markets Plunge Toward 50-Day EMA

Silver Markets Technical Analysis

Silver markets have fallen hard during the trading session on Monday to break through the crucial and psychologically important $20.00 level. By doing so, it then opened up the possibility of the market slamming into the 50-Day EMA just underneath. Because of this, the market does look like it is trying to decide whether or not there is any real support for silver, and therefore I think you should be paying attention to multiple fronts at the same time.

For example, the US dollar has a strong negative correlation to silver. More importantly, interest rates have a strong negative correlation to silver. If interest rates in America continue to climb, that’s not going to be good for silver. Beyond that, you cannot forget the industrial demand component of silver, which of course is something that newer traders tend to overlook. Silver is an industrial metal, not so much a precious one anymore. If we are in fact going into a major slowdown, the demand for silver will start to drop.

Regardless of which direction we go from here, I do believe that if we break above $20 again, we could make a run towards the 200-Day EMA, the one thing that you have to be cautious with is your position size. Silver is extraordinarily volatile under the best of circumstances, and in the markets that we have now, I think there’s a really good shot that silver ends up being extraordinarily difficult to hang onto. Because of this, you should always be aware of your position size and recognize that silver can wreck your account like very few other assets. Nonetheless, I still favor the downside.

Silver Price Forecast Video for 11.10.22

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