Silver Markets Bounce From Support During the Week

Christopher Lewis
2 min read
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Silver Weekly Technical Analysis

Silver markets have gone back and forth during the course of the trading week, initially hitting the $22 region. However, we have turned around to show signs of support, and therefore it looks as if we are going to continue to see a lot of buying pressure just below. That being said, we also have the 200 Week EMA sitting just below, and I think it is going to come into the picture as well. We are at the bottom of a larger consolidation area, and therefore I think a bounce would make a certain amount of sense. However, you should also pay attention to what happens next, because anything is possible.

If silver breaks down below the $21.50 level, then it is very likely that we go looking to reach the $20 level. This will also be negatively correlated to the US dollar, so you should keep an eye on the US Dollar Index. The markets continue to see a lot of noisy behavior, so you need to be cautious with your position size. Having said that, if we were to turn around a break above the highs of the week, then it is likely that we go looking to the $24 level. After that, then we could go looking to reach the $26 level which is the top of the overall consolidation area.

In general, this is a market that is very noisy, and of course will be much more volatile than gold, due to the fact that it has such a higher sensitivity to not only the US dollar, but also economic concerns as it is also a significant industrial metal.

Silver Price Forecast Video 09.05.22

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This article was originally posted on FX Empire

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