Silver Price Forecast – Silver Continues to Go Sideways

Silver Price Forecast Video for 19.07.23

Silver Markets Technical Analysis

Silver experienced a slight move higher on Tuesday, hovering around the $25 level, following a recent surge. This psychologically significant figure has influenced market movements, with a mild correction expected. Technical analysis suggests a potential entry point around $24.50, which previously acted as resistance. Traders should monitor critical support levels and the performance of the US dollar, which remains negatively correlated with silver.

After witnessing a rapid ascent, it is natural for silver to encounter a period of consolidation and a mild correction. This pullback could be seen as a necessary step to attract more buyers and sustain the upward trajectory. Notably, last week’s weaker-than-anticipated inflation numbers in the United States prompted traders to seek wealth preservation, leading to a surge in silver prices due to decreasing bond yields.

Technical analysis indicates that a potential entry point for silver lies around the $24.50 level, which previously served as resistance. Monitoring this level closely is crucial. However, should the market break below this level, traders should shift their focus to the 50-Day Exponential Moving Average as a critical support level.

On the upside, a breakout above the current consolidation range could propel silver towards the $26 level and potentially even the recent highs near $26.45, given sufficient time. To gauge the future direction of silver, it is essential to closely observe the performance of the US dollar, as the negative correlation between the two markets seems to be regaining prominence. The US Dollar Index acts as a valuable secondary indicator for silver, warranting careful attention.

Considering the prevailing market conditions, shorting silver would only become a consideration if it breaks below the 200-Day EMA, which is currently near the $23.25 level. However, such a scenario appears unlikely in the near future. Therefore, the favored strategy in this market is to “buy on the dips.” While a retest of the recent highs is anticipated, it is plausible to expect a short-term pullback before reaching that point.

Silver’s recent pullback and consolidation near the $25 level signal a potential entry point around $24.50, which acted as resistance in the past. Traders should monitor the 50-Day EMA as a critical support level. A breakout above the consolidation range could propel silver towards the $26 level and beyond. Given the negative correlation with silver, the performance of the US dollar remains a significant factor to consider. Shorting silver is unlikely unless it breaks below the 200-Day EMA near $23.25.

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