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Silver Price Forecast – Silver Continues to See Pressure

By:
Christopher Lewis

The silver market rallied a bit during the session on Monday, as the market continues to look at the bottom of the range with it being a springboard.

Silver bullion, FX Empire

In this article:

Silver Price Forecast Video for 13-02-2024

Silver Markets Technical Analysis

Silver bounced pretty significantly during the trading session here on Monday as we have reached the 50 day EMA. That being said, the silver market continues to see a lot of noise just above and I think at this point in time we have a scenario where the 50 day EMA and the 200 day EMA both come into the picture to offer some issues.

Short-term pullbacks are likely going to be buying opportunity because the $22 level underneath is a significant lure in the market. And therefore, if we are going to test that area, I do think that there will be a lot of people willing to get involved. However, if we were to break down below the $22 level, it’s possible that we could drop down to the $21 level.

That of course, was a recent swing low and a little bit of a throw over outside of the larger consolidation box that I see the market trading in. Keep in mind that silver is highly sensitive to interest rates, it’s highly sensitive to the US dollar, and it’s highly sensitive to industrial demand. Because of all this, it does tend to be a very noisy contract and therefore you do have to be a bit cautious with it.

You don’t necessarily want to jump all in right away because it can cost you a pretty penny when you are on the wrong side of a trade if it’s too big. The $23.60 level above opens up the possibility of a move to the $24.50 level and then eventually the $26 level. In general, I think this is a market that continues to be very noisy, but I do prefer buying dips.

I think silver is going to try to reach the top of this range that it’s in, as it’s done for a majority of the last two or three years, and I just don’t see how much has changed. Because of this, I think we are still rangebound overall, and therefore it is likely that we will continue to see more of the same action overall.

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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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