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Silver Price Forecast – Silver Continues to Look Choppy

By:
Christopher Lewis
Published: Mar 6, 2023, 15:10 GMT+00:00

Silver has pulled back a bit during the trading session on Monday, as we continue to see a lot of noisy behavior.

Silver, FX Empire

In this article:

Silver Price Forecast Video for 07.03.23

Silver Markets Technical Analysis

Silver has pulled back a bit after gapping higher in the futures market on Monday. Because of this, it looks like we are trying to form some type of support underneath that the market can bounce off of. It might be worth noting that the $21 level has been important previously, and therefore it makes a lot of sense that there would be noisy behavior in that general vicinity. Furthermore, it is also right around the 50% Fibonacci level, therefore I think you should take a look at this as yet another reason to think that the market may be paying close attention to it as well.

That being said, there is a lot of noise above, and therefore you need to pay attention to a couple of different levels. The first one would be the 200-Day EMA, which sits at roughly $21.90. Furthermore, we have the 50-Day EMA sitting just above there that could come into the picture, but it also looks as if it is trying to break down below that 200-Day EMA, forming the so-called “death cross.” That being said, the “death cross” typically is a bit late, so I don’t put way too much into the indicator itself.

I think if we can break above the $22 level, then it’s possible that we could go back to the $23.50 level where we sold off from so drastically. That’s an area that has been important multiple times, therefore it’s likely that it could be very difficult to get above there. All things being equal, this is a market that is trying to figure out where it goes next, and of course will have to pay attention to the possibility of industrial use going up or down, and the negative correlation that it typically will have with the US dollar.

All things being equal, I think that the silver market will continue to be very noisy, and therefore you need to look at it through the prism of a short-term trading opportunity more than anything else, as there is so much uncertainty out there, and it will of course because some of the more volatile market such as silver to remain very noisy to say the least.

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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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