Silver Futures Index $SILVER (SILVER)

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Silver Markets Continue to Plunge
By: Christopher Lewis | May 2, 2022

• Silver markets have fallen rather significantly during the trading session on Monday as we continue to plunge toward the major support level underneath in the form of the $22 level.

Silver Markets Technical Analysis

Silver markets have been very negative during the trading session on Monday as we continue to plummet. The US dollar has been like a wrecking ball against most other markets as well, so therefore you need to be very close to the US Dollar Index. If that continues to rise, it will put a lot of negative pressure on the silver market overall. After all, silver is highly sensitive, and then of course it is also not only a precious metal but an industrial one as well.

The $22 level has been massive support more than once and it is probably worth noting that we got here rather quickly. Because of that, we could get a bit of a bounce, but that bounce would not be something that I trust in the short term. In fact, I would look for any type of bounce to be a potential selling opportunity, with candlesticks that show exhaustion being trigger points. You should also pay attention to the $23 level because we did gap below it, so there is probably a bit of resistance built into that area as well. All things being equal, I have no interest whatsoever in buying silver anytime soon, because we have clearly made a shift in overall sentiment.

If we were to break down below the $21.50 level, then the market is likely to drop rather quickly, perhaps down to the $20 level. One of the things that may be working against the idea of silver is that there is going to be a slowdown globally, and that of course will drive down the demand for silver is an industrial metal.

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