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Silver Price Forecast – Silver Continues to See Upward Pressure

By:
Christopher Lewis
Published: Sep 18, 2023, 13:08 GMT+00:00

The silver market rallied just a bit during the course of the trading session on Monday, as we continue to flirt with the resistance barrier just above.

Silver bullion, FX Empire

In this article:

Silver Price Forecast Video for 19.09.23

Silver Markets Technical Analysis

Silver rallied just a bit during the trading session on Monday, as it looks like we are trying to break above the $23.50 region, an area that has had significant resistance as of late. If we can break above here, then it’s likely that we could continue to go much higher. After all, the market has been trying to recover from the bottom of the longer-term range, and so far, it looks as if momentum is trying to push to the upside. Furthermore, we also have the 50-Day EMA sitting just above, so people will be paying attention to that as well.

When I look at the silver market, I see the $22.50 level as an area of the bottom, while the $25.50 level above is the range. All things being equal, it does look like we are getting ready to try to reach toward the upside, but I think it’s going to be very noisy along the way. This is especially true considering that Wednesday is the FOMC meeting and of course the press conference. A lot of this may come down to what happens with the US dollar, as though to have a negative correlation.

That being said, the correlation is not always 100%, so you can only read so much into that. Interest rates of course have their influence as well, but quite frankly this is a market that has been consolidating in a fairly well-defined area since May, therefore it’s likely that we continue to respect that dynamic, at least in the intermediate term. At this point, I am much more interested in buying than selling, but I don’t think this is a situation where the market suddenly takes off, I think it will be more or less a big grind than anything else. Because of this, position sizing is something that you’re going to have to pay close attention to, because volatility will almost certainly be very troubling at times. Nonetheless, we are closer to the bottom than the top, so one would have to assume that there is a certain amount of demand in this market 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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