Silver Price Forecast – Silver Approaches the 200-Day EMA

Silver Price Forecast Video for 02.10.23

Silver Markets Technical Analysis

Silver rallied rather significantly during the trading session on Friday, as it looks like we are heading to the 200-Day EMA. At this point, the market is likely to continue to see a lot of noisy behavior, but at the same time, you have to recognize that we are in a larger consolidation area, with a $22.50 level underneath being massive support. Above, we have the $25.50 level offering resistance, and as we are closer to the bottom of the consolidation rectangle, it does make a certain amount of sense that the buyers have more momentum than the sellers.

Furthermore, we also saw the US dollar loses a lot of momentum during the Asian and European markets, so that obviously helps silver as well, as there is a negative correlation between the 2 assets. With that being the case, the market is likely to continue to see this market be volatile, but it’s not really until we break above the $24 level that the market can reach the upside and start looking toward the top of the consolidation rectangle.

Underneath, if the market were to break down below the $22.50 level, then the $22 level is going to be an area that gets targeted next. After that, the market then breaks down to the $20 area, which is a large, round, psychologically significant figure, and therefore one would have to think that there will be a lot of interest in silver down there, making it a nice target for those who choose the short this market on the breakdown.

Interest rates have been rising in America, that of course has a negative effect on anything that is not the US dollar longer-term, and of course you have to worry about the fact that the silver market is highly influenced by the industrial part of the equation, as silver is a bit of an industrial metal as it is a precious one. If we are going to continue to see concerns about the global economy, that could cause a little bit of downward pressure on silver. All things being equal, this is a market that remains in consolidation, and therefore you have to look at this through the prism of a longer-term attitude, but keep in mind that your position sizing needs to remain cautious.

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