Silver Price Forecast – Silver Markets Break Through Major Support
Silver markets have broken down significantly during the trading session on Wednesday to slice through the crucial $22 level. This has been an area that I have been watching for a while, and now that it is giving way to the selling pressure, I anticipate that we go much, much lower. At this point, I would imagine a move to the $20 level as being very likely. Rallies at this point will continue to be sold into, as the $22 level should start to offer resistance.
SILVER Video 30.09.21
The US dollar of course is a major culprit as to what is going on right now, and as long as yields in America continue to strengthen that is going to continue to work against the value of precious metals overall, with silver be especially sensitive. Beyond that if we have some type of major “risk off event”, that will put more downward pressure on the silver market, and therefore send it careening down to the $20 level.
Your capital is at risk
At this point, I have no interest whatsoever in trying to buy this market, after what we have seen during the day on Wednesday. In fact, I think you would have to see this market recover the $23 level in order to get long again. The market turn around and recovering all of that would obviously be a very bullish sign, but I do not see that happening anytime soon. With that being the case, I will continue to fade short-term rallies, at the first signs of exhaustion on short-term charts. The greenback continues to be a major driver of where things are going in the metals market.
For a look at all of today’s economic events, check out our economic calendar.