Silver Price Forecast – Silver Plunges in The Early Hours of Monday

Silver Markets Technical Analysis

The silver market fell rather hard during the course of the early hours on Monday, as we have broken down from the 50 day EMA and now it looks like we are trying to get interested in the 200 day EMA underneath. As we are between these two moving averages, it does suggest that we’re going to see some type of violent action, because typically that’s what happens when you squeeze between these two. And really at this point, I think silver is at the mercy of the interest rate markets in America.

If the interest rates in America continue to climb, you’re going to have a situation where silver eventually breaks down. If silver were to break down below the $28.75 level, that would be extraordinarily negative and could send silver down to the $26.50 level. On the other hand, if silver can recapture the $31 level, then I think it rallies rather significantly.

We are most certainly in an area of inflection, so you need to be paying close attention to this, and I would be very cautious with my position sizing considering just how crazy things could get over the next couple of weeks. This is a market that I think continues to see a lot of questions asked of it. The market will continue to be volatile, but this is a market that sees this happening a lot.

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