Silver Futures Index $SILVER (SILVER)

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Silver Markets Testing a Major Support Level
By: Christopher Lewis | May 4, 2022

• Silver markets have fallen a bit during the trading session on Wednesday heading into the FOMC, but it should be noted that we are sitting right on top of major support.

Silver Markets Technical Analysis

Silver markets have fallen a bit during the trading session on Wednesday, but it looks as if we are sitting on top of a major support level that should be respected. The $22 level has been crucial more than once, and I think it will continue to be a place that traders pay close attention to. With this being the case, it is only a matter of time before we bounced as far as I can see unless of course, the Federal Reserve becomes much more hawkish than people thought. If that is the case, then we could have a brutal selloff, but I do not think that is going to be the case as Federal Reserve officials certainly understand just how much has changed in the marketplace.

This is not to say that they are going to coddle the market or even worry about stocks. However, getting overly tight into a slowdown is probably the worst thing they can do, and one would hope that they would have an idea of this. Just above, I see the $23 level as a barrier worth paying close attention to, so therefore I would more likely than not be aggressive until we get there. If we can break above the $23 level, then it is likely that silver will go ripping to reach the $24 level after that.

If we do break down below the $22 level, silver could fall apart. At that point, I would anticipate silver dropping down to the $20 level, an area that would obviously have a lot of psychology attached to it. While not impossible, it certainly seems as if it would take a lot of effort to make that happen.

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