A Quiet Start for Silver Markets, According to the Silver Price Prediction Model

Silver markets have done relatively little throughout the trading session on Monday, as the Americans were away for the Independence Day vacation. This means that there was just a small amount of electronic trade, so suggesting that you cannot read too much into the Monday candlestick. You may, however, read quite a deal into the Friday candlestick. The Friday candlestick pierced the $20 barrier, so wiping off a number of stop loss orders.

Any recovery at this moment in time in the silver market needs to be looked at through the lens of mistrust, since the downside is so strongly embedded in the mentality of market players. In fact, it’s not until we break over the $22.50 barrier that I start to look in the opposite direction. I feel that the $20 level should be small barrier, but I predict that there is much more resistance towards the $21 level.

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At the first hint of weariness, I will more often than not put on a tiny position to start “dipping my toe in the water” to the downside. My desire to purchase silver is currently thwarted by an overvalued currency and rising interest rates in the United States, both of which operate against the total worth of commodities. Adding additional gasoline to the flames is that industrial demand for silver should continue to drop in this climate, so it’s simply too much for the markets overcome anytime soon.

If we break down below the lows of the Friday session, I predict that the $18 level will be attacked next, followed by the $15 level.