Silver Price Forecast – Silver Markets Struggle With Trendline

Silver Markets Technical Analysis

Silver markets have pulled back just a bit during the trading session on Tuesday as the US dollar has picked up a bit of steam. CPI numbers in the United States came out twice what they were anticipated to be, so that of course has a rush to “risk off.” Whether or not silver breaks down from here is a completely different question, but it certainly looks as if silver would be an easy short.

If we break down below the $19 level, there’s not much to keep silver from dropping to the $18 level. The $18 level has been a major support level, and therefore it’s likely that we would struggle to get below there. However, if we did it get below there, we could really start to fall apart at that point.

On the other hand, if we somehow turn around and break above the $20 level, silver probably challenges $21 rather quickly. At that point, we then start to pay close attention to the 200-Day EMA, which of course is a longer-term technical indicator that a lot of people will pay attention to. Regardless, you need to pay close attention to the US dollar in general, because if it does start to rise again, that puts a lot of pressure on silver.

Also, industrial demand will come into play as well, and if we are in fact heading into a rather nasty recession, it would not be overly surprising to see silver take the brunt of a lot of selling pressure. Silver is volatile under the best of conditions, so at this point, one would have to think things are only going to get worse. We are overbought in the short term, so all of this lines up quite nicely.

Silver Price Forecast Video for 14.09.22

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