Technical analysis of silver markets
Silver markets rallied quite significantly during Wednesday’s trading session as CPI numbers came out hotter than expected. That being said, it will more or less always be a “relief rally”, and so it is not too surprising to see that we could not break above the $22 level. For this reason, I think it’s probably only a matter of time before we see silver markets continue to sell off.
While we can break above the $22 level for anything sustainable, it’s not until we break above $23 that you can make the case for silver to change things. Keep in mind that the demand for silver will continue to fall on the industrial side, which deserves special attention. Ultimately, this is a market that I will continue to fade each time it rallies until we break through that $23 level on the daily close. If we did, it could change a lot of things, but for now, it looks like it harbors strength.
If we break below the lows of the last two days, it almost certainly opens up a move towards the $20 level, which was my original thesis, to begin with. The strength of the US dollar could almost certainly guarantee that to happen, but it may take some time to get there. Either way, silver is much more sensitive to risk appetite than gold, so if this market starts to crash, it will likely drag its cousin down with it. It was a nice rally for the day, but it didn’t change much.
Silver Price Prediction Video 12.05.22
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This article originally appeared on FX Empire