Silver Weekly Price Forecast – Silver Markets Form a Hammer for the Week
Silver markets initially fell during the course of the week and got really hammered on Wednesday as we awaited the FOMC statement. That being said, by the end of the day we had completely turned around and recapture the $22 level. At the end of the week, we have formed a bit of a hammer which of course is a bullish sign. If we can break above the top of the hammer, extensively the $22.60 level, then it is very likely that silver will try to recover completely.
SILVER Video 20.12.21
It is not lost on me that the $22 level has been crucial multiple times in the past, and of course the 200 week EMA sits just below the hammer. All of this being accounted for, it certainly looks as if this could be a great place for a “bottom in the market.” We have seen this area offer a lot of buying pressure more than once, so quite frankly I do not think it would be a stretch to see more of the same.
Your capital is at risk
However, we are heading into the last two weeks of the year and that typically means a serious lack of liquidity. In that scenario, almost anything can happen if we get a sudden announcement or some type of headline crossing the wires causing concern. With that in mind, be cautious about your position size. Nonetheless, if you are bullish of silver, this is exactly what you needed to see in order to have hopes of profiting from the trade. If we do break down below the lows of the week, I think that we will visit the $20 level rather quickly.
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