Silver Price Forecast – Silver Continues to Flex Its Muscles

Christopher Lewis

Silver has initially pulled back a bit during the trading session on Friday, but has turned around to show signs of life again.

Silver bullion, FX Empire

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Silver Price Forecast Video for 04.12.23

Silver Markets Technical Analysis

Silver has rallied during the Friday session, as we initially pulled back to look for value, before breaking higher. The RSI is now in the overbought condition, and it suggests that we are a bit overdone. I don’t think this is a market that you can hang onto for a big move at this point, but I certainly don’t necessarily advocate shorting this commodity either, due to the fact that it has been so bullish. Because of this, I’m waiting for some type of pullback in order to start buying, closer to the $24 level being very attractive.

The 50-Day EMA has broken above the 200-Day EMA, taken off the so-called “golden cross”, which is a longer-term bullish sign, but that doesn’t necessarily mean that we have to go straight up from here. Furthermore, it’s likely that we will continue to see a lot of negativity between the interest rates and silver as well, therefore it’s likely that we can continue to see that negative correlation push things around. Regardless, I think at this point we need to see some type of buying opportunity based on value, something that we have stretched far beyond in the last couple of trading sessions.

If we do continue to go higher, then it is likely that we will challenge $26, but silver is extraordinarily volatile under the best of circumstances, so you need to be very cautious with your position sizing. As we head into the year, liquidity will also be a major issue, therefore I think you get a situation where you need to take into account that we will continue to see a bumpy ride.

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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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