Forecast of the Silver Price – Silver Markets Continue to Exhibit Trepidation

Analysis of the Silver Markets 

Keep in mind that Monday was Memorial Day in the United States, despite the fact that silver markets originally rose during Monday's trading session. Due to this, liquidity would have been problematic. Nonetheless, it appears that the $22 region continues to provide substantial resistance, just as it did in the past. On Friday, we ended up generating a gigantic shooting star, which is a really terrible appearance. If the $22 level is breached, it is likely that there will be further losses; this is especially true if the $21.75 level is breached.

On the plus side, if we were to surpass the $23 mark, it would signal a substantial reversal and open the door to future increases. We would need to witness some slowdown in the dollar's gain, if not a total reversal. At this point, it does not appear likely, thus I believe it will only be a matter of time before silver prices fall again. Also keep in mind that the industrial demand for silver is projected to decline in the near future, which will have a big impact on the price.

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The $21 level is a potential downside target, but I honestly believe silver has further to fall if it truly begins to unravel. Keep in mind that silver is far more sensitive to negative pressure than gold when metal prices begin to decline. I feel that silver is currently poised to resume its longer-term downturn, but I will continue to monitor price activity nonetheless.