Silver Price Forecast – Silver Continues to Look For Buyers Just Underneath

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Published: Jan 17, 2024, 13:48 GMT+00:00

Silver markets look as if they are trying to stabilize near the $22.50 level, but I also believe that there is an overall range that extends all the way down to the $22 level, meaning that value can be found, but keep in mind that silver is extraordinarily noisy.

Silver Price Forecast Video for 18-01-2024

Silver Markets Technical Analysis

Silver initially fell during the trading session on Wednesday but has turned around to show signs of life again. By doing so, it suggests that there is a certain amount of support near the $22.50 level that traders are paying attention to. Whether or not it ends up being longer term support remains to be seen because I think it’s more or less a support zone that we are talking about, not necessarily a support line. What I mean by this is that the support probably extends down to the $22 level. On the upside, the 200 day EMA sits right around the $23.33 level and if we can break that, then I think it’s a very good sign for silver going much higher. At that juncture, I would expect a market to go looking towards the $24.50 level above, which has been important multiple times.

And if we can break above there, then silver is very likely to go looking towards the $26 level. While bullish on silver, I recognize that it is a very difficult and choppy market under the best of circumstances and right now this is not the best of circumstances. Because of this, I think you have to be very cautious with your position sizing, but that’s probably sound advice when trading silver under any condition.

All things being equal, I do think that you will have to pay attention to the bond market, the 10 year yield specifically, in the United States, because it does have a negative correlation. Pay attention to the US dollar as well because it also has a negative correlation quite often for the exact same reasons. So, with that, I think you are looking to buy dips in the silver market, but I would not get aggressive in position sizing until the market starts to prove to you that your position is the correct one. At that point, then you can start to add to your position and truly start to try to capitalize on momentum.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.