Silver Price Forecast – Silver Continues to Build a Basing Pattern

Silver Price Forecast Video for 23.02.23

Silver Markets Technical Analysis

Silver has gone back and forth in a rather quiet trading session on Wednesday, as we are currently hanging around the 200-Day EMA. The market has recently sold off, but we have just formed a potential “V pattern”, one of my favorite signals to start buying again. If we can break above the $22 level, we would not only get above the 200-Day EMA indicator, but we would also clear a psychologically important figure that a lot of people will put a certain amount of interest in.

Breaking above that level opens up the possibility of silver taking off and reaching towards the 50-Day EMA, which currently sits at the $22.67 level. If we can break above there, then it opens up the $23 level as a potential target. While I do think that’s a very real possibility, I also recognize that it might be difficult to get back up to that area. In other words, I would anticipate that we will see a lot of choppy behavior on the way out, and of course silver is very volatile to begin with. The volatility of silver demands that you keep a reasonably small trading position on, and you should remember that as the way forward. However, I will be more than willing to add to my position on the way up if I do in fact get that move.

The alternate scenario is that we break down below the hammer from the Monday session. The Monday session touched the 50% Fibonacci level, which of course is an area that a lot of technical traders will pay attention to. If we break down below that hammer, then it’s likely that we could drop down to the 61.8% Fibonacci level, possibly even the psychologically important $20 level. It was not long ago that the $20 level was a major barrier, so I suspect that would attract a lot of attention as well. Whether or not this has recently been a pullback, or if it is silver actually struggling remains to be seen, but it does act very much like a pullback in a bullish longer-term trend as of the last couple of trading sessions.

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