Silver Futures Index $SILVER (SILVER)

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Silver Markets Looking for Bottom
By: Christopher Lewis | April 27, 2022

• The silver markets have been all over the place during the trading session on Wednesday as we are rolling over into the next contract.

Silver Markets Technical Analysis

Silver markets have gone back and forth during the trading session on Wednesday as we continue to see a lot of noisy behavior overall. That being said, silver is so oversold at this point one would have to assume that sooner or later there will be value hunters willing to get involved. In that scenario, I anticipate that we probably see a lot of noisy behavior, and therefore I think you will have to be very cautious about how aggressive you get.

Ultimately, if we turn around and bounce, I believe that the $24 level might be an area of interest, right along with the 200 Day EMA. It is not until we break above there that I would be bullish on silver, and even then, I would have to see what the US dollar is doing. Quite frankly, the US dollar has been like a wrecking ball for the metals markets, as interest rates continue to scream higher.

As long as interest rates continue to rise the way they have, it will cause some issues for both gold and silver, and silver also has the extra concern when it comes to global demand. Silver is an industrial commodity more than anything else, and gold is a currency. Because of this, we are seen a bit of a dichotomy as to how they are behaving, but both have been negative.

If we break down below the $23.25 level, then it is possible that we go looking to the $22 level. However, we are oversold at this point, and I do think that could come into play given enough time. Whether or not it can be sustained is a completely different question.

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