Silver Price Prediction - Silver Markets Remain Weak

Wednesday's trading session witnessed a precipitous decline in silver prices, which broke far below the $19 barrier. Later in the day, though, we did try a recovery, when we climbed back above that level. By the time the Americans arrived, it appeared that we would attempt to create a hammer. Breaking over the top of a hammer allows for the chance of a short-term rebound, but the $20 level above will likely present some psychological resistance.

The market breaking below the bottom of the hammer for the trading session creates the chance of a move substantially lower, and I believe it creates something of a trapdoor for markets to go much lower. The market might then decline below $18 or possibly $15 at that moment. I anticipate this market will continue to concentrate on the U.S. dollar, which has a significant negative link with silver.

Rising U.S. interest rates and looming recession fears indicate that silver will continue to decline, therefore I favor the notion of shorting silver and have no interest whatsoever in attempting to purchase silver as the bottom has not yet been reached. The market is quite weak, and until something happens from the Federal Reserve, I cannot imagine silver suddenly bouncing and continuing to rise. A Herculean effort would be required to shift the market's perspective.