Silver Price Forecast – Silver Gives up Early Gains

Silver markets have initially rallied during the trading session on Thursday but gave back the gains rather quickly to turn around and crash into the $24 level. This is an area that I think will continue to be of interest, as the $24 level has been so supportive. With this, I think that the market will probably continue to see a lot of noisy behavior, but if we do break down below the $24 level, it is very likely that silver will get absolutely hammered. After all, silver is highly sensitive to the round figures, and $24 is an area that had been important more than once.

SILVER Video 10.09.21

When I look at this chart, it is easy to see that we have been slumping for a while, and therefore I think you need to pay close attention to the fact that we are forming a bit of an inverted hammer for the session. Ultimately, I do believe that this is a market that will try to figure out where to go longer term of the next couple of sessions, and a move below the $24 level almost certainly sets up a challenge to the $23 level. $23 below has been much more significant as far as support is concerned, so please keep that in mind as well.

With that, I think that what we are looking at here is a scenario where we are going to have to test that level again before the buyers feel comfortable enough to actually hold on to silver. Furthermore, when you look back you can see that we had in fact formed a “death cross” previously, which of course is a longer-term bearish signal.

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