Silver Price Forecast – Silver Continues to Bounce Around in Its Flag Pattern

Silver Price Forecast Video for 02.11.23

Silver Markets Technical Analysis

Silver has fallen a bit during the trading session on Wednesday as we continue to see a lot of noisy behavior. We are in the midst of building a bullish flag, and therefore in a bit of consolidation. That being said, we have bounced just a bit during the later part of the early hours, as it looks like support will continue to come back into the picture. Keep in mind that the Federal Reserve has a meeting later in the day, and therefore a lot of traders will be very cautious. Nonetheless, we are in a very bullish run as of late when it comes to precious metals, and let’s be honest here, there are a lot of geopolitical concerns when it comes to the markets, and that does tend to help precious metals.

However, you should keep in mind that silver also has a bit of an industrial component built into it as well, so it tends to be quite a bit messier than the global market. Regardless, this is a market that continues to find buyers on dips and I don’t see that changing anytime soon. If we do get some type of selloff after the Federal Reserve announcement, I suspect that sooner or later traders will come back in and try to pick up “cheap silver.” Ultimately, the US dollar has its effect on the silver market, and that obviously will be all over the place later in the day. Interest rates also come into the picture, so that’s also something worth paying attention to. With all that being said, I think you’ve got a situation where you have to be cautious, but cautiously optimistic probably ends up being the best way to look at it.

If we were to break down below the $22.50 level, or perhaps even the $22 level, things could get rather ugly. On the other hand, if we can finally break out above the top of the bullish flag, I suspect that silver will go looking to the $24 level, followed very quickly by $25.33 above. Either way, I think you are going to see a lot of volatility but you still have to favor the upside overall.

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