Silver Price Forecast – Silver Gives Up Early Gains to Show Weakness Again

Silver Markets Technical Analysis

Silver markets have initially tried to rally during the Wednesday trading session, but the $21 level seems to have been a bit too much to overcome. By doing so, the market has shown just how negative it is, and it’s worth noting that we had formed a massive “H pattern” in general. This is a very negative formation, so if we do write down below the $20.50 level, and perhaps the $20 level, it’s very likely that the silver market will break down rather drastically. At that point, I would anticipate that silver will go looking to reach the $18 level, possibly the $15 level.

The alternate scenario is that the market breaks above the high for the trading session on Wednesday, it could continue to send this market a bit higher, perhaps reaching as high as $22 above. The 50-Day EMA is drifting lower and could offer a certain amount of dynamic resistance. If we break above there, it would obviously be a very bullish sign, perhaps opening up the possibility of silver going to the $23 level.

However, the reality is that the market is going to struggle as long as the Federal Reserve continues to be very tight with its monetary policy, which works against metals. Furthermore, the silver market is highly sensitive to risk appetite, as well as industrial demand, which both are being priced at lower levels right now, so it does suggest that we are going to continue to struggle. Fading short-term rallies should continue to be an opportunity to get short again, at the first signs of exhaustion. I have no interest in buying at this point.

Silver Price Forecast Video for 30.06.22

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This article was originally posted on FX Empire