Silver Price Forecast – Silver Markets Slam Into Resistance

Silver Markets Technical Analysis

Silver markets have rallied rather significantly during the trading session on Wednesday, as CPI numbers came out hotter than anticipated. That being said, this is more or less always going to be a bit of a “relief rally, and therefore it is not overly surprising to see that we could not hang out above the $22 level. Because of this, I think it is probably only a matter of time before we see silver markets continue to sell off.

Even if we can break above the $22 level for anything sustainable, it is not until we break above $23 that you can make an argument for silver turning things around. Keep in mind that demand for silver will continue to drop from the industrial side, which is something worth paying attention to. Ultimately, this is a market that I will continue to fade every time it rallies until we break above that $23 level on a daily close. If we did do that, then it could change a lot of things, but right now it just does look like it houses strength.

If we break down below the lows of the last couple of days, that almost certainly opens up a move down to the $20 level, which was my initial thesis, to begin with. US dollar strength could almost certainly guarantee that happening, but it may take a while to get there. Regardless, silver is much more sensitive to risk appetite than gold, so if this market starts falling apart, it will probably drag its cousin down with it. It has been a nice rally for the day, but it has not changed much.

Silver Price Forecast Video 12.05.22

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