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Silver Price Forecast – Silver Markets Form a Potential Reversal Signal

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Silver Markets Technical Analysis

Silver markets have gone back and forth during the trading session on Friday, after capping just a bit higher. Ultimately, the market looks as if it is trying to form a “bullish harami”, which is a somewhat obscure Japanese candlestick pattern that people look at as a potential reversal pattern, but obviously cannot be a perfect indicator. Ultimately, the market is oversold so it makes quite a bit of sense that we get a little bit of an oversold bounce. The $20 level above should be a significant resistance barrier, based upon not only previous action but also the fact that it is a large, round, psychologically significant figure.

If the market were to break above the $20 level, then it could go looking to reach the $21 level, an area that I would anticipate seeing even more resistance as we not only have a large number there, but we also have previous selling pressure and the 50 Day EMA slicing through it. Because of this, I think it is more likely than not that this remains a “fade the rally” type of situation, especially as the US dollar has been so strong.

That being said, you can also make a significant argument for the fact that the US dollar has been overbought, so silver may get a little bit of a relief rally at this point. Ultimately, if we break down below the $18 level, then it’s likely that we go lower, perhaps reaching down to the $15 level, possibly even the $12 level. Ultimately, this is a negative market, and therefore you should look at it through that prism.

Silver Price Forecast Video for 18.07.22

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This article was originally posted on FX Empire

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