Silver Price Forecast – Silver Continues to Test The Bottom of The Overall Range

Silver Price Forecast Video for 23-01-2024

Silver Markets Technical Analysis

You can see silver has fallen pretty hard early in the session on Monday as it looks like we are continuing to threaten the $22 level. I do believe that the $22 level is an area that will continue to hold and you can see that short-term traders have already come back into the market looking to defend it. So, it could be a buying opportunity but I would not get too big, though.

Silver does tend to be very noisy and therefore it can be somewhat dangerous to trade, but having said that, this is a market that I think has got a pretty clear support level underneath that you will be paying attention to. If we can break above the $22.50 level, then I suspect that silver has a real shot at going quite a bit higher to the 200 day EMA right around the $23.20 level.

Breaking below the $22 level would obviously be very negative, but even in that environment, I don’t think I would be a seller because there seems to be a lot of buying pressure underneath there that extends down to at least the $21 level. So, with that in mind, if you have the ability to take on a small position, this might be an opportune moment.

What you will want to see is the US dollar fall a bit and interest rates fall a bit, both of which are very possible, but there really isn’t much in the way of economic announcements on Mondays, so there really isn’t a whole lot to get anybody excited. Keep in mind that silver is an industrial metal, so that comes into play as well, and that might be part of what’s been a little bit negative as of late, but nonetheless, we are still very much in this huge consolidation phase, and I just don’t see that changing very easily. As we are at the bottom of that range, it is probably more likely than not that the buyers will return and this is a bullish market, at least for the short term.

For a look at all of today’s economic events, check out our economic calendar.