Technical analysis of the silver markets
Silver markets were in serious trouble on Tuesday after initially turning down. Yes, we filled the gap as futures markets normally do, but at this point we finally saw many sellers come back into the market and punish it. Because of this, it is very likely that we will continue to see selling pressure and a miserable two weeks.
Ultimately, it is likely that the market will test the lows at $20.42 and then maybe drop to the $20 level if given enough time. That doesn’t necessarily mean it’s going to happen right away, nor does it necessarily mean it’s going to be easy. However, it should be noted that the market will most likely be very volatile.
If we bounce from here, I would not be convinced of a trend reversal until we break above $23. That doesn’t look very likely, so I suspect at this point that we need to go much further down. As long as the US dollar remains strong, it’s difficult to imagine a scenario where silver suddenly becomes something people want to own.
If you’re looking for some kind of inflation hedge, you need to look at gold, not this market. Finally, gold doesn’t have the industrial component that silver does, so it helps shield a bit of that noise. Nonetheless, this is a market that is looking awful and I see no reason to bet on silver any time soon. The subsidence of short-term rallies has worked so far.
Silver Price Prediction Video 06/15/22
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