Silver Futures Index $SILVER (SILVER)

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Silver Markets Collapse
By: Christopher Lewis | May 12, 2022

• Silver markets have gotten hammered during the trading session on Thursday as we have sliced through the $21 level. We have recovered a little bit during the day, but we have broken through significant support.

Silver Markets Technical Analysis

Silver markets have fallen somewhat hard during the trading session on Thursday as we have breached the $21 level. This is an area that was rather important support previously, and the fact that we have sliced through it does not bode well for the future. Silver is not only a precious metal, but it is also an industrial metal. This suggests that perhaps traders are worried about global growth, as it should drive down the demand for the material.

Furthermore, the US dollar has been strengthening quite rapidly, so it makes sense that we would see silver and other metals get hammered. Gold has fared a little better, but it also looks like it is somewhat vulnerable at the moment. At this point, any rally in the silver market should invite plenty of selling. The $22 level offers a significant amount of resistance as it was the previous support level that many people have paid close attention to. A little bit of “market memory” could come into this picture, and therefore I am more than willing to take advantage of any signs of exhaustion that appear.

At this point, I anticipate that the market will go looking to reach the $20 level, although it may take a while to get there. If and when we do, I would anticipate a certain amount of psychology to come back into the market, but I think at that point, we could go even lower. Keep in mind that there is a lot of fear out there, and people typically do not run to silver in times of fear.

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