Silver Price Forecast – Silver Continues to Show Signs of Strength

Christopher Lewis
Published: Mar 31, 2023, 15:46 GMT+00:00

Silver has rallied again during the trading session on Friday, after initially dropping. At this point, there are a lot of questions as to whether or not we can continue to go higher and simply sliced through this major resistance barrier.

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Silver Price Forecast Video for 03.04.23

Silver Markets Technical Analysis

Silver initially pulled back during the trading session on Friday, only to turn around and show signs of strength again. At this point, there is quite a bit of noisy behavior between here and the $24.60 level. If we break above there, then we have a lot of resistance at the $25 level, and we are overstretched. I would be very cautious about buying silver at this point, because quite frankly I think you will get some type of pullback in order to buy silver “on the cheap.”

Underneath, the $23.50 level is a significant area of previous support, so I would anticipate that it should offer buying pressure. If we break down below there, then we could go looking to the $22.40 level, which is right at the 50-Day EMA and rising. Ultimately, this is a situation where we will continue to see a “buy on the dip” mentality going forward, but that doesn’t necessarily mean that you need to be chasing the market to the upside. That being said, if we were to break above the $25 level, then it is likely that we could go much higher, perhaps kicking off a big move to the upside.

On the other hand, if we were to turn around and break down below the 50-Day EMA, then it’s likely that we would see a huge dump lower. That’s very unlikely at the moment, and therefore I think a lot of traders will continue to look at this through the prism of wealth preservation. That being said, it may underperform gold, simply because silver is also an industrial metal, and you have to wonder whether or not there is going to be a lot of industrial demand at this point. After all, the market continues to see a lot of concerns about whether or not we are going to head into a recession, so there is going to be a lot of noise in the silver market, which quite frankly is its norm. I would love to see a pullback that we can take advantage of at this point.

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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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