Silver Price Forecast – Silver Bounces After an Initial Selloff

Christopher Lewis
Published: Nov 28, 2022, 15:14 UTC

The silver has initially plunged during the trading session on Monday, showing signs of weakness, but the 200-Day EMA has offered support.

Silver FX Empire

In this article:

Silver Price Forecast Video for 29.11.22

Silver Markets Technical Analysis

Silver markets have initially pulled back a bit during the trading session on Monday, to reach down to the 200-Day EMA. The 200-Day EMA is an indicator that a lot of people will pay close attention to, so it’s not a huge surprise to see that it has offered support. Furthermore, the 200-Day EMA sits at the $21 level, which has a lot of psychology attached to it. It also has been previous resistance, so the fact that it offered support should be expected.

If we were to break down below the $21 level, then we could test the 50-Day EMA which is closer to the $20.27 level, which is also rising. On the upside, the $22 level could offer significant resistance, and if we were to break above the $22.50 level, then it’s very likely that we could see the silver market really take off to the upside, perhaps opening up the possibility of a move to the $25 level. At this point, I suspect that silver is going to remain very choppy, but one of the things that could cause a lot of problems is going to be a potential lack of industrial demand. Remember, this is an industrial metal, not just a precious metal.

Ultimately, you should also pay attention to the US dollar and yields in America, because they have a strong negative correlation to silver. With this being the case, I suspect that we’ve got some noise ahead of us, but once we break out of this consolidation it’s likely that we get a much bigger move. At this point, silver looks neutral but is trying to break out.

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

About the Author

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.

Did you find this article useful?