Silver Futures Index $SILVER (SILVER)

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Silver Markets Rollover
By: Christopher Lewis | May 18, 2022

• Silver markets have fallen a bit during the trading session on Wednesday and we have confirmed the hesitation formed by the shooting star from the previous session.

Silver Markets Technical Analysis

Silver markets have fallen during the trading session on Wednesday as we continue to see the $22 level show its importance. The silver markets are highly susceptible to US dollar pressure, as it rises. The US dollar has shown signs of strength multiple times, and therefore one would think it should continue to be the case given enough time. However, the market will be noisy, as is typically the case with silver. After all, the silver market is extraordinarily volatile, so you do need to be cautious about the position size that you put on. Nonetheless, it is obvious that there is no real reason to be a buyer anytime soon.

If we do break above the $22 level, it is very likely that we will continue to see sellers above there anyway, as the trend is so firmly ensconced. The interest rates in the United States continue to push the US dollar higher, and therefore one would think that silver will succumb to a lot of pressure. Rallies at this point are to be sold into, and it is not until we clear the 50 Day EMA that I would consider this a potential turnaround.

Ultimately, I think it continues to be a “sell the rallies” situation, as the silver markets look like they have much further to go to the downside. The only thing I think you can count on at this point is volatility, and therefore you should take advantage of that but may have to look at shorter-term charts more than anything else. If we do break down below the bottom of the daily candlestick for Wednesday, it is likely we go looking towards the most recent low.

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