Silver Price Forecast – Silver Explodes Out of Pennant

Silver Price Forecast Video for 02.05.23

Silver Markets Technical Analysis

Silver has gapped to the upside to kick off the week, fell to fill that gap, and then took off like a rocket afterward. Because of this, it looks like silver is ready to go much higher, and ultimately, I think this is a situation where you should continue to see a lot of “buy on the dip” traders coming into the market, and try to take advantage of any type of wealth preservation.

The bullish pennant that has formed opens up the possibility of a move all the way up to the $31 level based on the “measured move.” That doesn’t mean that we get there overnight, nor does it mean that it will be easy to get there. For that matter, nothing is 100% guaranteed. However, a lot of technical traders will almost certainly be paying close attention to that measured move, and the idea that the pennant is suggesting much higher levels.

It’s also worth noting that silver is a very volatile market to say the least, so I think at this point we have a situation where the position sizing is going to be the only real tool you have to protect yourself, because just as we can see this market takeoff and gain 2% suddenly, it can also lose that same 2%. Silver is a very difficult beast to tame, so you need to be very cautious.

Ultimately, I would not be a seller of silver regardless, at least not until we break down below the 50-Day EMA which is quite some distance below is. The market is very unlikely to get there, but it’s also worth noting that the 50-Day EMA sits right in the middle of the previous consolidation area, so there would be a lot of order flow there anyway. With this, I think it remains “buy on the dip”, but I would not chase the market all the way up here, due to the fact that the volatility could shake you out of the position rather easily. Look for a short-term pullback before you put any money to work, as it could cause you major issues. With this, it’s very likely we continue to see choppy behavior but with an upward tilt.

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