Silver Price Forecast – Silver Gives Up Early Gains

Silver Markets Technical Analysis

Silver continues to be very noisy, as we initially tried to rally during the trading session on Wednesday. However, we have given back the gains and it looks as if silver is going to continue to struggle with the idea of going higher, at least in the short term. Ultimately, I do believe that this is a market that will eventually find its way higher, but we may need to search the bottom here for a while. With that being said, pay very close attention to the idea of a negative correlation between silver and the US dollar, as we have seen this be a major impact on the markets recently.

That being said, we are hovering above the crucial $22 level, an area that has been important multiple times. If we were to break down below the $22 level, then the market could really start to unwind. At that point, I would anticipate that the silver market could go down to the $20 level. The $20 level is an area that has been very important in the past, and of course is a major psychological round figure.

On the other hand, if we do turn around from here, recapturing the 200-Day EMA would open up the possibility of a move to the $24 level. That’s right around the 50-Day EMA, so I do think at this point it’s likely that we would see more momentum jumping into the market because of this. With that being said, I think you’ve got a situation where you need to see the market struggling a little bit at the moment, but as soon as we get some type of momentum, it’s possible that we could make a move that has a little bit more wherewithal. At this point, the market is currently plunging, but it is probably worth noting that we still have plenty of support underneath. The question is whether or not we can bounce in order to form some type of recovery in the overall consolidation area. All things being equal, let the market make its move and simply follow, because trying to “front run” the market could be very dangerous at this point.

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