Silver Price Forecast – Silver Markets Holding Onto Support LevelSilver markets have initially tried to rally during the day on Tuesday but have given back just a bit of the gains as it looks like we are desperately hanging on to the $22 level for support.
Silver markets rallied a bit during the trading session on Tuesday but gave back the very top of the candlestick as we are seeing a bit of hesitation. As you can see on the chart, the market has been selling off quite drastically for a while, so it should not be a huge surprise to see us try to take out the $22 level underneath, opening up the possibility of even deeper selling. The market breaking down below the $22 level will more than likely offer an opportunity for silver to drop down towards the $20 level, over the longer term of course.
SILVER Video 22.09.21
Pay attention to the US dollar, because if it continues to strengthen, that will certainly work against the value of silver itself. Furthermore, the market is likely to continue seeing a lot of hesitation in general, because quite frankly silver is highly sensitive to the idea of industrial demand. Quite frankly, it looks like there are a lot of concerns out there when it comes to growth, and of course the credit market in China. As long as there is more of a “risk off” attitude out there, then it makes a certain amount of sense that silver itself would fall, mainly due to the fact that silver is considered to be a very volatile and “risk on” type of market.
Regardless, you can see that the significant selling of the last couple of weeks has barely been pushed back against, suggesting that we have further to go to the downside rather quickly, and once we break below the $22 level, I suspect there is a slew of stop loss orders there to push this market much lower.
For a look at all of today’s economic events, check out our economic calendar.