Silver Markets Technical Analysis
Silver markets have fallen during the trading session on Wednesday as the area near $22 continues to be fought over. This is an area that previously was supported, but now it looks as if we are going to see resistance. The market is obviously chopping around and trying to figure out whether or not it can continue the upward momentum. It does not look likely to do so at this point, and of course, silver is highly sensitive to industrial demand. As it looks like the global economy may be getting ready to slow down, it’s hard to imagine a scenario in which demand for silver picks up.
You also have to pay close attention to the US Dollar Index, which has a huge negative correlation to the silver market. Because of this, I think it is probably only a matter of time before you see silver start to fall. Even if we did rally from here, I don’t think you can take a rally seriously until we break above the $23 level. That also includes the 50 Day EMA, which sits just above there. When you look across the chart at the $22 level, you can see just how important it has been multiple times in the past, so it’s difficult to imagine that there will be some type of reaction in this area.
The $20 level underneath could be a bit of a target over the longer term, as we did not quite reach that area last time, but it certainly was the target. If we can break down below the $20 level, then it’s likely that this market will unravel quite drastically.
Silver Price Forecast Video 26.05.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire