Silver Price Forecast Video for 27.09.23
Silver Markets Technical Analysis
Silver has initially fell during the trading session on Tuesday to reach down toward the $23 level, but as things stand, it looks like we are trying to turn around and show signs of life. If we can break above the 200-Day EMA, then the market could go much higher, as we continue to see a lot of support underneath in a market that has obviously been very noisy for some time. Alternatively, the $22.50 level underneath is a massive support barrier, and of course we have a lot of noise between here and there.
On the other hand, if the market were to take off to the upside, then the $25.50 level then becomes the ceiling above. All things being equal, this is a market that I think continues to see a whole lot of noisy behavior, therefore I think the best thing you can do is keep your position size reasonable. Ultimately, this does look like a market that’s trying to form some type of short-term basing pattern, but we also have to worry about interest rates.
As interest rates rise, it makes riskier investments such as silver a lot less attractive. After all, you can get paid to simply sit still in the Treasury market, instead of taking on a lot of volatility. Silver is volatile under the best of conditions, and right now we are definitely not in the best of conditions. However, it does look like we have a short-term bounce in play, so short-term traders will probably take advantage of that opportunity. In general, this is a scenario where the volatility continues to cause a lot of headaches, so you do need to be cautious, but position sizing can keep you out of a lot of trouble.
The US dollar of course has a negative correlation with this at times as well, so that will be something that is worth paying attention to. Ultimately, this is a scenario that I think the short-term traders will continue to love, but for those of you that are trying to trade longer-term, you will have to have your position size reasonable so that you can hang on to the various fluctuations that you are getting ready to see.
For a look at all of today’s economic events, check out our economic calendar.
