Silver Price Forecast – Silver Continues to Grind Sideways

Christopher Lewis
Updated: Mar 29, 2023, 15:23 UTC

Silver markets have pulled back just a bit during the trading session on Wednesday but found support underneath to show signs of life again. At this point, it looks as if we don’t have anywhere to be.

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Silver Price Forecast Video for 30.03.23

Silver Markets Technical Analysis

Silver has pulled back just a bit during the trading session on Wednesday, but we have also seen buyers come back into the market to cause more back-and-forth action than anything else. The area that we are currently sitting at, has previously been a major area of selling pressure, where we have broken down quite drastically. Just above, we have the $24 level, which of course is the headline number that a lot of people will be paying attention to.

Furthermore, we have quite a bit of noise all the way to the $24.60 level. The $24.60 level is an area that has been resistance multiple times, and therefore it’s going to be difficult to see the market break above there without some type of fundamental reason coming into the picture. The market rally at this point in time is more likely than not going to see a bit of exhaustion coming into the market, that might be the cue to start selling silver. After all, silver is a different animal than gold, meaning that silver has a major influence in the form of industrial demand. While it is a precious metal, it does not have the same characteristic as gold when it comes to that.

Ultimately, I think this is a market that does have a lot of support underneath it though, so you have to keep that in mind as well. The $23 level should be important, followed by the 50-Day EMA itself. With this, I think we’ve got a situation where although I’m not necessarily overly bearish for silver, it is almost certainly a bit overdone and therefore pullbacks should be welcomed. The 200-Day EMA is my “line in the sand”, as it sits just below the $22 level. If we were to break down below there, then I think silver has more problems I had. Ultimately, expect a lot of volatility but that’s nothing new for silver as it is one of the more volatile markets that you can trade. Position sizing will be crucial, but right now we are trying to figure out whether or not we are ready to pull back.

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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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