Silver Price Forecast – Silver Bounces From Previous Support

Silver Price Forecast Video for 28.02.23

Silver Markets Technical Analysis

Silver has fallen a bit during the trading session on Monday, to reach down toward the $20.60 level, which of course is an area that previously had seen a little bit of support, so it’s not a huge surprise to see the market turn right back around. At this point, we could very well bounce a bit, but I think that bounce will probably end up being a bump along the road more than anything else.

If we were to break down below the $20.60 level, then it’s possible that we could go down to the $20.50 level, which obviously has a little bit more in the way of psychological importance when it comes to trading. Breaking down below that level then opens up the possibility of a move to the $20 level, which will attract quite a bit of attention in and of itself. I think it is probably only a matter of time before we try to get down there, but that doesn’t mean we get there right away. A short-term rally from here could open up a move to the $21.25 level where we had seen quite a bit of selling pressure previously, and I do believe that is more likely than not.

Keep in mind that silver is highly sensitive to the US dollar, so if the US dollar starts to take off and gain strength again, that will work against it. That being said, I also expect to see a lot of choppy volatility regardless, and quite frankly silver is known for that anyway. Because of this, you need to be very cautious with your position size but we have clearly seen a turnaround of shorts, and now it looks like we will have to determine whether or not the market can continue to find momentum in one direction or the other, but I suspect this is more of a “fade the rally” type of situation going forward.

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