Silver Price Forecast – Silver Continues to Threaten the Top of Consolidation Area

Silver Price Forecast Video for 06.07.23

Silver Markets Technical Analysis

Silver has gone back and forth during the trading session on Wednesday, as we are hanging around the 200-Day EMA. The market has been consolidating for a while, and I think if we can break above the short-term resistance, somewhere near the $23.33 level, the market could then go look into the 50-Day EMA. After that, then we have the possibility of moving toward the $24 level. The $24 level is a large, round, psychologically significant figure that a lot of people will be paying attention to. There is resistance extending all the way to roughly $24.50, so if we were to break above there is possible that we could go looking to the $26 level.

That being said, the market is currently trading between the 200-Day EMA and the 50-Day EMA indicators, and therefore I think it remains very noisy. If we do pull back from here, there is a certain amount of support near the $22.33 level, where we have been bouncing from over the last couple of weeks. If we were to break down below that level, then there’s the possibility that we break down below the $22 level. By doing so, that opens up a fresh leg of selling pressure, perhaps sending silver down to the $20 level.

Either way, keep in mind that silver is highly sensitive to the US Dollar Index, and if the US dollar start strengthening, that can work against the value of silver. Beyond that, you also have to look at this through the prism of whether or not there is going to be industrial demand. There are a lot of questions right now as to whether or not there will be, so that might be part of what has made silver somewhat sluggish over the last couple of months. Either way, on the chart you can see that I have a rectangle, and if we can break out of that is likely that the market could continue to see a bigger move. All things being equal, we are in a bit of a holding pattern but I think we are getting close to some type of impulsive candlestick that we can take advantage of.

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