Silver Price Forecast – Silver Attempts to Rally

Silver Price Forecast Video for 13.12.23

Silver Markets Technical Analysis

Silver rallied ever so slightly during the early hours on Tuesday, showing signs of a potential recovery. At this point, the market looks as if it is completely oversold, and therefore a bounce does make a certain amount of sense. The 200-Day EMA sits just above, and it could offer a bit of resistance. If we were to break above there, then the market could open up the possibility of a move to the $23.50 level.

At this point, the market bouncing into that area does make a certain amount of sense, especially considering that the oversold condition almost certainly brings out value hunters. Furthermore, we also have central banks giving us interest rate decisions over the next couple of days, so that obviously will have an effect on the bond markets and therefore those who had shorted this market and made so much money over the last 4 or 5 sessions will be taking advantage of quick profits.

All things being equal, keep in mind that the silver market tends to be very noisy, and now that we have the Federal Reserve, Bank of England, Swiss National Bank, and the European Central Bank all releasing interest-rate statements, press conferences, and more, it’s likely that the precious metals markets will get moving. If they start to sound soft, that probably helps gold and silver both. However, you also have to keep in mind that silver is also an industrial metal, so economic announcements showing that the global economy might be slowing also could work against silver at the same time.

Underneath, the $22 level offers significant support, while the next major resistance barrier is near the $24 level. All things being equal, this is a market that I would anticipate a lot of volatility in, so with that being said, the market is likely to continue to see quick moves, and therefore you need to keep your position size rather small because the next couple of sessions could be very dangerous if you are not careful. Ultimately, this is a situation that you need to be cautious, but at the end of the day, the reality is that we are oversold.

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