Silver Weekly Price Forecast – Silver Markets Bounce From Major Support Level

Silver Weekly Technical Analysis

Silver has bounced from the $18 level during the week, as the Bank of Japan has sold US dollars on Friday to protect its own currency. While this doesn’t directly affect the silver market, it affects the US dollar to a point, and therefore causes a little bit of noise over here. Regardless, the $18 level is a crucial area to pay close attention to, because if we were to break down below there, it’s likely that we could see a rather sharp drop, maybe down to the $16 level, possibly and $15 level after that.

Keep in mind that the market is likely to continue to see a lot of volatility, and of course a negative correlation to interest rates and the US dollar. Keep in mind that inflation continues to rage, so the Federal Reserve will have to do whatever it takes to fight inflation, and therefore monetary policy is going to continue to be very tight.

At this juncture, I think we’ve got a situation where the market is still a “fade the rally” type of scenario, with the $20 level being a major resistance barrier. The 50-Week EMA has broken down to reach the 200-Week EMA, suggesting that we are about to see something break. I don’t know that it happens right away, but I certainly have no interest whatsoever in buying silver as long as the monetary policy at the Federal Reserve remains the same.

Another thing that people forget is that silver is an industrial metal, and therefore you need to keep in mind that global demand may drop, that of course is bad for prices as well.

Silver Price Forecast Video for the Week of 24.10.22

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