Silver Weekly Technical Analysis
Silver markets have fallen a bit during the trading sessions that make up the previous week, as the $18 level has been important more than once. Ultimately, this is a situation where the market continues to see a lot of volatility, and of course noisy behavior to say the least. The market has a negative correlation to the US dollar and the interest rates coming out of the bond market. Ultimately, you also have to keep in mind that this is a market that is highly sensitive to industrial demand, as there is a lot of usage of silver in the manufacturing sector.
You should also keep in mind that the silver market has seen the $18 level offer a lot of support previously, and if we could break down below there, it’s likely that the market could break much lower, perhaps reaching to the $16 level, but even the $15 level. The markets will continue to be noisy, and of course we have a downtrend line this is just above.
The $20.00 level could be an area of significant resistance, so therefore I think signs of exhaustion could be difficult to overcome. That being said, we did form a hammer for the week, so that is obviously a bullish sign, and this of course is a situation where certain traders will be looking to it as a buying opportunity.
However, if we were to break down below the bottom of the candlestick, then it’s likely that the silver market will collapse, because breaking down below support is one thing, but also breaking down below a hammer is another thing as well.
Silver Price Forecast Video for the Week of 03.10.22
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