Forecast for Silver Price – Silver Markets Continue to Collapse

The silver market attempted to rise to the $20 level, but was met with sufficient selling pressure there to collapse once more.

Tuesday’s trading session witnessed a tremendous amount of negative pressure, suggesting that silver prices are about to see a big decline. The fact that the US dollar is killing everything in its path should not come as a major surprise given the dollar’s recent strength. At this point, the silver market trend should be evident, thus I see no need to go long in the near future. Ultimately, I believe this is a situation in which you should want to sell rallies.

Silver markets have been battered for some time, and it now appears that the “H pattern” in the market will continue to bring about a general malaise. The expected trend is a decline to $15, and given the current state of the world, I believe it makes a great deal of sense. I’m not interested in trying to be too clever with this market, so although I’m not going to pursue it all the way down here, I’m also not seeking to purchase any boundaries. We will leap on rallies that exhibit symptoms of hesitancy, as the trend is most plainly bearish.

You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if required, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts provide spreads beginning at 0 pips and commissions of $3.50 every 100k transacted. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any nation or jurisdiction where distribution or use would violate local law or regulation.

The 50 Day Exponential Moving Average is at $21.89 and falling, indicating that dynamic resistance is also beginning to decline. To become bullish, we would need to break over the $22 barrier, which I do not anticipate occurring anytime soon. I am currently ignoring rallies and doing nothing else. I have no interest in attempting to short the market here, despite the fact that it might continue to decline.

Leave a Comment