Silver Price Forecast – Silver Continues to Consolidate

Silver Price Forecast Video for 03.08.23

Silver Markets Technical Analysis

Silver has shown itself to be a little hesitant, as we are sitting above the 50-Day EMA, and consolidating in general. The $25 level above of course offers a significant amount of resistance, so we need to break above there in order to continue more upward momentum. Underneath, the 50-Day EMA offers support, and so does the 38.2% Fibonacci level. Underneath there, we have the 200-Day EMA which sits right around the 50% percent Fibonacci level as well.

All things being equal, this is a market that is forming some type of ugly flag, so you could get bullish on that reason alone, but you also need to pay close attention to the US dollar, as there is a significant amount of negative correlation between the 2 assets over the longer-term. However, they do diverge from time to time, so you can’t read that as a 100% set up, but if the US dollar starts to fall, then silver should benefit. Nonetheless, this is a market that is typically very noisy, so you do have to be cautious with your position sizing, due to the fact that volatility can be very expensive at times.

If we were to break down below the 200-Day EMA at the $23.30 region, then we could start to see more of a breakdown. Keep in mind that the $22.50 level was a significant support level, so anything underneath there opens up a massive selloff down to the $20.00 level. I don’t necessarily think that will happen, but it is something that we need to keep in the back of our minds, as the other side of the trade is almost always something that you need to be at least cognizant of.

In general, this is the scenario where I think we’ve got quite a bit of volatility ahead, especially as we have the jobs number coming out on Friday, which will obviously cause a lot of volatility as well. The next couple of days may be more or less about going sideways, so I’m not expecting a whole lot between now and that announcement, as most of the market is probably waiting for that next bit of information.

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