Silver Price Forecast: $63.50–$70 Range Keeps Traders Waiting

Silver Technical Analysis

The silver market has fallen pretty significantly during the early part of the trading session here on Wednesday. Traders continue to see a lot of noisy and conflicting headlines. Keep in mind that the interest rate situation in the United States is rising, and therefore it works against the market pricing.

The 50-day EMA and the 200-day EMA are now flat, so it suggests that traders are looking at this through the prism of a range. I think that probably holds here, as there are two conflicting forces.

Silver Supply Continues to Be in Demand, With Low Supply

There is the fact that the supply of silver is not growing while demand is. It puts a little bit of bullish pressure there, but we also have a stronger U.S. dollar and interest rates working against it.

So, we are basically in a range between $63.50 and $70. With this, traders are more likely than not going to stick to range-bound systems, trying to take advantage of the back-and-forth behavior that this market is currently showing.

I don’t have any real signs on the chart that I’m looking at that suggest that silver is about to take off. But if it breaks out of those ranges, then we have to reset and look at our expectations for this market, and where it is going.

Longer term, I like silver a lot, truthfully. But using a leveraged CFD position or a futures position, it’s a different conversation. As far as physical silver is concerned, I still am bullish on that. But right now, it looks like we’re just kind of drifting sideways, trying to figure out where to go next.

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