Silver Price Forecast – Silver Continues to Stabilize

Silver Price Forecast Video for 16.05.23

Silver Markets Technical Analysis

Silver has rallied a bit during the trading session on Monday, as we continue to stabilize in general. The market is hanging around the 50-Day EMA, an area that has been very difficult. The $24.50 level makes a certain amount of sense as resistance based upon previous noise, but if we can break above that 50-Day EMA, then it’s very likely that this market truly takes off to the upside, and perhaps rips toward the $25 level. The $25 level of course is a large, round, psychologically significant figure, and an area that previously had been a lot of support. Because of this, the market is likely to continue to break above that level and then take off to the $26 level.

On the other hand, if we break down below the candlestick for the Friday session, it’s very likely that the $24 level gets challenged and silver goes looking to reach the $23 level underneath. The $23 level is a large, round, psychologically significant figure that a lot of people will pay close attention to, because it was the bottom of the overall consolidation area that the market had been stuck in during the winter time. If we continue to drop from there, then the next argument will be the 200-Day EMA.

Keep in mind that silver also has an industrial component built into it, so that means that if there are traders out there worried about the market pricing in an economic slowdown, it then becomes a fight between wealth preservation and industrial demand. It’s also worth noting that the market has bounced off of the 38.2% Fibonacci retracement level, and this could bring in quite a bit of technical support. Breaking down below that level does bring in the 50% Fibonacci level near the $23 level as well, so that’s probably about as deep as this correction goes unless of course the US dollar acts like a wrecking ball against everything like it can do at times. That being said, the one thing you can probably count on is a lot of choppiness and volatility, which is typical in the silver market in general.

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