The market is currently challenging the $19.00 level, possibly opening the door to a decline to the $18 level. In general, the $18 level is a crucial longer-term support level that we have been closely monitoring, and if it is breached to the downside, it is likely that prices would fall substantially more. In such a case, over the next few months might fall to as low as $15.
Alternatively, if we were to break over the top of this week’s candlestick, it is feasible that we could target the $22 level, but it would be difficult to move higher. Any rally at this time should be viewed as a selling opportunity, particularly if the US currency continues to strengthen. Silver is unquestionably suffering at the hands of a strengthening U.S. dollar as well as rising U.S. interest rates.
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The fact that the economy appears to be slowing will add to silver’s woes, and it should be kept in mind that silver’s market is quite sensitive to this, since it is now viewed primarily as an industrial metal. Nonetheless, if we reverse course and begin rallying, you must pay close attention. Despite the recent rebound, it is probable that we will continue to decline. Ultimately, I believe that is what occurs.
