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Silver Price Forecast – Silver Continues to Chop Back and Forth

By:
Christopher Lewis
Published: Jun 7, 2023, 15:26 GMT+00:00

Silver continues to see a lot of chop, as indecision remains.

Silver, FX Empire

Silver Price Forecast Video for 08.06.23

Silver Markets Technical Analysis

The trading session on Wednesday witnessed a slight decline in the silver market, showing continuous noise. However, there are key factors to consider that may indicate an impending squeeze. Silver is hovering around the 50% Fibonacci retracement level, positioned between the 50-Day EMA and the 200-Day EMA indicators. This particular trading range often signals an imminent significant movement. Therefore, exercising patience may benefit traders looking to navigate the silver market.

Regarding a potential downward scenario, a break below the 200-Day EMA could open the door to decline further, reaching the 61.8% Fibonacci level, potentially around the $22 mark. If this level is breached, it would pave the way for a more substantial move downwards, with the $20 level becoming a viable target. This potential decline may coincide with a strengthening US dollar.

On the upside, traders should be aware of the slight resistance of the 50-Day EMA just above the $24 level. If silver manages to surpass this hurdle, it is likely to set its sights on the psychologically significant $25 level, which tends to attract significant attention from market participants. Considering these factors, it appears inevitable that traders will soon assess whether the pullback has provided an opportunity for value hunting. If so, a significant market bounce is probable, potentially propelling silver toward its previous highs.

When dealing with silver, it is crucial to exercise caution and be mindful of position sizing due to its inherent volatility. The dual nature of silver, acting as both a precious and industrial metal, adds complexity to its dynamics. Consequently, trading silver is more complex than trading gold in the current market environment. Nonetheless, silver retains its place and significance in the market. Diligence is key, and taking the time to enter positions thoughtfully is crucial. Once the confines established by the moving averages are broken, substantial and potentially lucrative price movements can be anticipated.

At the end of the day, silver continues to navigate through volatility, offering both challenges and opportunities to traders. Wednesday’s minor setback should be viewed in perspective, as silver remains within the range defined by the 50% Fibonacci retracement level, the 50-Day EMA, and the 200-Day EMA. Patience is advised as a significant move appears on the horizon. Caution should be exercised in position sizing, considering the noise and complexity surrounding silver’s role as a precious and industrial metal.

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.

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