Silver Price Forecast – Silver Continues Consolidation

Silver Price Forecast Video for 28.11.22

Silver Markets Technical Analysis

Silver has gapped higher to kick off the trading session on Friday, only to pull back and fill that gap. We are still above the 200-Day EMA, so it suggests that we are going to continue to see a bit of a fight here. Underneath, we have the $21 level, an area that is going to continue to be important as it was previous resistance. On the other hand, if the market were to rally from here it’s likely that we would see the $22 level ask some questions of the buyers.

Silver is highly sensitive to interest rates, as higher interest rates tend to have a huge negative correlation with silver. The US dollar also has a negative correlation to this market as well, so therefore I think we’ve got a situation where the market is one that you have to pay attention to several charts at the same time. If we do finally take out the $22.50 level, then it allows silver to go much higher, perhaps reaching to the $25 level.

Underneath, breaking below the $20 level would be extraordinarily negative for silver, opening up the possibility of a complete breakdown. In that scenario, I think we would go to the $18 level before it’s all said and done. Regardless of what happens next, the one thing that you need to be serious about is your position sizing, because quite frankly silver markets are noisy under the best of circumstances, and we have a lot of different moving pieces at the moment that could cause problems. The fact is that economic conditions are deteriorating, so you have to wonder about the potential selling off of the asset.

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