Silver Price Forecast – Silver Continues to See Volatile Moves

Christopher Lewis
Published: May 23, 2024, 13:39 GMT+00:00

The silver market initially fell hard in the early hours of Thursday but has since turned things around to show signs of strength and support. This is probably the way forward, as silver remains very volatile, but still positive overall.

In this article:

Silver Markets Technical Analysis

Silver fell during the early hours on Thursday but then turned right back around to show signs of life again. This is a market that I think, given enough time, will almost certainly try to get back into the area above, which was so important recently.

But you also have to keep in mind silver is a very dangerous market at times, and therefore it is one that needs to be approached with a certain amount of caution. Silver has the industrial component that can drive it higher or lower, but it’s also got the precious metals component that makes it somewhat mimic gold, although they do diverge from time to time.

The relative strength index has now dipped below the 70 level, so we are not technically overbought at this point, or at least not from that indicator. So that might entice more people to get involved. The $30 level underneath should continue to be support. So, pay close attention to that. If we break down below there, then we may reset closer to the $28.50 level, where the 50 day EMA is currently racing towards.

On the upside, the $32.50 level is a major resistance barrier that we will have to fight. So, if we can break above there, that would obviously be an extraordinarily bullish sign as well. Remember to keep your position size reasonable. Silver can punish you when you’re wrong, and the losses can pile up rather quickly if you are overexposed in this contract.

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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