Silver Price Forecast – Silver Bounces From Support Level

Silver Price Forecast Video for 01.03.23

Silver Markets Technical Analysis

Silver has fallen rather hard during the trading session on Tuesday, to reach down toward the $20.50 level, only to turn around and show signs of life. By turning things around it looks as if the market is trying to bounce from here, as we may be a little oversold. Furthermore, you need to pay close attention to the US dollar, because if it starts to lose strength it’s possible that silver will be a beneficiary.

There are a lot of concerns about global demand and of course industrial demand, because both of those will have a major influence on what happens next. The 200-Day EMA sits just below the $22 level, and of course will offer quite a bit of resistance if we get anywhere near there. We have broken down for a reason, but I would also point out that the market is currently testing the area between the 50% Fibonacci level and the 61.8% Fibonacci level as well, sometimes referred to as the “golden pocket.”

If we do bounce in here, then it would be a very good sign that we are going much higher, but it must be noted that the recent selloff had been vicious, followed by a slow grind lower. Has the trend in silver changed? We don’t know yet, but it certainly looks as if it is making an argument to go lower. If we could clear the $21.50 level, then possibly we have some momentum to carry it higher, but it’s really not until we break back above $22 that silver will have proven itself to most traders, thereby opening up the possibility of a move back toward the $24 level.

It’s also worth noting that the $25 level has been crucial multiple times in the past, and of course just offered a major ceiling. Even if we do break higher from here, I think the idea of breaking above the $25 level is a bit of a stretch, and I don’t think that happens anytime soon. Ultimately, silver has seen its highs from everything I see on the chart.

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