Advertisement
Advertisement

Silver Price Forecast – Silver Continues to Consolidate

By:
Christopher Lewis
Published: May 31, 2023, 14:09 UTC

Silver has gone back and forth during the trading session on Wednesday, as we continue to see the market try to consolidate and find its footing after bouncing from the 200-Day EMA.

Silver, FX Empire

In this article:

Silver Price Forecast Video for 01.06.23

Silver Markets Technical Analysis

Silver has gone back and forth during the trading session on Wednesday, as we have been bouncing around the 200-Day EMA for a while. That being said, we are also hanging around the 50% Fibonacci level, which of course is a large figure of interest by traders around the world, so if we can continue the upward momentum, I suspect that the market will go looking to reach the 50-Day EMA which sits right around the $24 level. As we are between the 50-Day EMA and the 200-Day EMA indicators, it does suggest that we are in a situation where there will be continued volatility as both of those indicators mean a lot of things to algo traders.

If we do break down below the 200-Day EMA, then it’s possible that this market could go looking to the 61.8% Fibonacci level, which of course is an area that a lot of people pay close attention to. Anything underneath there than opens up the possibility of a move to the $20 level, where the entire move started from. While I don’t necessarily think that happens anytime soon, that is something we need to keep in the back of your mind because the markets can do anything at any time. That being said, we can take out the 50-Day EMA above, then it’s likely that we could go looking to the $25 level, which is a large, round, psychologically significant figure that a lot of people will pay close attention to. That movie is the most likely of the ones that I am tracking right now, but we need to see some type of momentum to get this thing going.

Keep in mind that there is a negative correlation between Silver and the US dollar most of the time, so that could cause a bit of a problem, so therefore I’m not jumping in with both feet, rather I would be building up a position slowly in this market as the volatility of silver is difficult under the best of circumstances, and considering that there are so many moving pieces right now around the world, it’s not can it be any better currently.

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.

Did you find this article useful?

Advertisement