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Silver Price Forecast – Silver Continues to See Noisy Trading

By:
Christopher Lewis
Published: Jun 18, 2024, 13:41 GMT+00:00

The silver market pulled back a bit in the early hours of Tuesday, as we continue to see a lot of noisy trading overall. At this point, it looks like there are a lot of traders out there willing to buy dips.

In this article:

Silver Markets Technical Analysis

The silver market initially tried to rally overnight on Tuesday, but quite frankly, could not hang on to the gains. By doing so, the market looks likely to continue to find support underneath, perhaps extending down to the $28.50 level. The 50-day EMA is between here and there, and therefore I think you’ve got a situation where traders will continue to look at it through the prism of trying to find value. There are a lot of questions right now about what central banks are doing, and therefore I think there’s a lot of questions as to what silver will do.

That being said, this is a market that has a lot of underlying pressure, and therefore I think there will be plenty of people out there willing to step in and buy the dips. If we were to break down below the $28.50 level, that would be a relatively negative sign, but even then, I think the real battle is probably down at $26. That was the scene of the major breakout that got us to where we are.

Silver is a bit sluggish, but I think right now, more than anything else, most market participants are just trying to work off some of the excess froth. Remember, silver is volatile under the best of circumstances, and right now, isn’t necessarily the best of circumstances, so the volatility is probably only going to get worse before it gets better. Nonetheless, it does look like it wants to go higher in general, so I do err on the side of the trend. Therefore, I am a buyer, at least at the moment.

For a look at all of today’s economic events, check out our economic calendar.

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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