Silver Price Forecast – Silver Markets Trying to Stabilize

Silver markets have gone back and forth during the course of the trading session on Tuesday as we continue to see the market try to figure out what to do next. With the CPI numbers coming out on Wednesday, I anticipate that there probably will be nothing but noise and chop between now and then. After all, the market is trying to figure out the inflation situation in America, which of course has a major influence on the US dollar. If the US dollar starts to strengthen again, that will be very negative for silver but at this point in time I think the one thing that you should take away from this chart is that we have seen a massive collapse in support.

SILVER Video 11.08.21

To the upside, I anticipate that the market will not be able to break above the $25 level anytime soon, unless of course inflation suddenly drops in America, something that is not very likely to happen. To the downside, if we break down below the $22 level that will send silver sellers into a frenzy, making this market drop towards the $20 level over the longer term. Quite frankly, the move at the open on Monday was a bit surprising considering that the market fell almost $100 in roughly 20 minutes. That being said that type of disastrous action does not simply go away, it suggests to me that we are eventually going to see further downside. Yes, we did have a nice bounce from the $22 level, but quite frankly the $22 level is only holding because we got there so quickly. At this point, I would not be surprised at all to see this market retest that area.

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