Silver Futures Index $SILVER (SILVER)

[DiscoverGold]

Silver Markets Continue to Respect the Same Resistance
By: Christopher Lewis | May 17, 2022

• Silver markets have rallied significantly during the trading session on Tuesday to reach the $22 level. This is an area that has been important in the past, so it is not a huge surprise that “market memory” has reentered the market.

Silver Markets Technical Analysis

Silver markets have rallied initially during the trading session on Tuesday to reach near the $22 level. The $22 level is an area that had previously been a massive support for the market, so it is not a huge surprise to see that a bit of “market memory” has come back into the picture. Because of this, I think silver is going to continue to struggle, and therefore you need to be very cautious about buying it. In fact, it is very likely that we go looking to the bottom again, but it does not necessarily have to happen right away.

Keep an eye on the US dollar, as it has a major negative correlation to the silver market. Ultimately, this is a market that I think is going to continue to struggle, but if we broke above the $22 level, I would have to pay close attention to that. Nonetheless, I think as long as the Federal Reserve continues to be rather hawkish with its monetary policy and its outlook, it will more likely than not have a negative influence on the demand for commodities, and therefore will have a knock-on effect in the silver market as silver is considered to be a major industrial market.

In general, I think the aspect of the precious metals will be overlooked, and if you are looking to play metals for the inflation trade, you are better off looking to gold. Silver looks extraordinarily vulnerable at this point. Fading rallies continues to work.

Read Full Story »»»

DiscoverGold