Silver Price Forecast – Silver Finds Buyers on the Dip
Silver Price Forecast Video for 02.06.23
Silver Markets Technical Analysis
Silver has initially fallen during the trading session on Thursday, only to turn around and show signs of life. Ultimately, this is a market that I think will try to go looking toward the 50-Day EMA above, which of course is an indicator that a lot of people pay close attention to. If we can break above that, then I think it opens up quite a bit of buying pressure in a market that had been very strong for quite some time, before the recent selloff. The market had bounced from the 50% Fibonacci level and the 200-Day EMA, both of which of course are very important. In this general vicinity, I would anticipate a lot of noisy behavior, and therefore the choppiness certainly makes quite a bit of sense.
If we were to break down below the 200-Day EMA, that could be a negative turn of events, and therefore we would have to pay close attention to it. In that environment, things get rather interesting, because then we could fall all the way down to the $20 level. I think if that were to happen, the US dollar would skyrocket as it would take advantage of a “major risk off environment.” Remember, silver is a precious metal, but it is also an industrial metal, and therefore you have to pay close attention to the global economy, as the demand for silver could be a major issue.
At this point in time, the market is likely to continue to see a lot of noise as we are between the 200-Day EMA and the 50-Day EMA, as it has the impression of a lot of “crosswinds” for the market. I think we probably have more or less a sideways choppy market in the short term, but I do think eventually we will have to make a bigger decision. As things stand right now, I suspect we probably break to the upside but I would wait until we get some type of impulsive candlestick to put money to work at this point.
For a look at all of today’s economic events, check out our economic calendar.