Silver Price Forecast – Silver Markets Are Attempting to Stabilize

Christopher Lewis
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Silver Markets Technical Analysis

Silver has been choppy during trading on Tuesday, as we are trying to figure out whether or not the market is going to continue to break down, or if it’s going to recover. The $19.50 level is an area that a lot of people will be paying close attention to, with a potential target of $20 next. That being said, we are still very much in a downtrend, and with good reason. Nothing has changed from a bigger picture point of view, as people are concerned about global growth, and of course the demand for silver as a result.

Keep in mind that although most traders are taught that silver is a precious metal, the reality is that it is much more common to use it for industrial use, so a slowdown of the economy certainly would have a negative effect on the idea of demand, and therefore price. I think at this point in time, it’s likely that we will see signs of exhaustion sold into.

The 50 Day EMA sits at the $20.91 level, and now looks to offer a significant amount of dynamic resistance, so it be important to pay close attention to that area. All things being equal, I think that signs of exhaustion will continue to be trading opportunities to the downside. This is especially interesting due to the fact that the overall attitude of the markets has been negative for quite some time, and the technical analysis also suggests that they should continue. If we were to break down below the $18 level, that could open up the possibility of a move down to the $15 level.

Silver Price Forecast Video for 20.07.22

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This article was originally posted on FX Empire

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