Silver Price Forecast – Silver Markets Testing Crucial Level Yet Again

Silver markets have fallen a bit during the course of the trading session on Thursday to reach down to the crucial $22 level. This is an area that has attracted attention more than once, so therefore it makes quite a bit of sense that we would continue to see a lot of noise in this general vicinity. That being said, I think the market is more than likely going to find a certain amount of support extending down to the $21.50 level. This is an area that if it does not hold, it could show a significant break down just waiting to happen. At that point, I would anticipate that the silver market could go looking towards the $20 level.

SILVER Video 10.12.21

On the other hand, if we can turn around and take out the $22.50 level, it is likely that we could get a little bit of a recovery at that point. It is not necessarily my base case scenario, but it is an actual possibility. If we break above there, then we probably go looking towards the 50 day EMA.

All of that being said, you need to pay close attention to the US dollar, and of course the US Dollar Index. The US dollar typically has a negative correlation to the silver market, so pay close attention to the greenback. If it starts to move, the silver market typically will move in the opposite direction. If the US dollar continues to strengthen, that will be absolutely toxic for this market. All things been equal, this is a very poor looking chart but we have course are sitting at a major support level.

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