Silver Price Forecast – Silver Markets Rally to Kickoff Week
Silver markets have rallied a bit during the course of the trading session on Monday, to reach closer towards the $23 level. This is an area that is significant resistance from the short-term perspective, and of course we should note that we have recently bounced from the $22 level which has a massive support level. In other words, the market is likely to continue to see the $22 level as a major battlefield, and therefore if we break down below that level, I think silver collapses.
SILVER Video 28.09.21
On the other hand, if we can take out the $23 level on a daily close, then it is possible that we could go looking towards the $23.85 level, and even the 50 day EMA which is sitting at the $24 level. The market breaking above that level could change the entire trend, but right now it is very difficult to imagine that we are going to see that happen anytime soon. The market certainly looks as if it is trying to figure out whether or not they are going to defend this area, or if we are going to fall apart.
I suspect that the market will have to pay close attention to the US dollar, because the negative correlation between the two markets is well-known and of course crucial. Because of this, I think that you need to keep one eye on the US Dollar Index, and one eye on the silver market. All things been equal, we are about to make a significant decision, and this is a market that will certainly be worth paying close attention to.
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