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Silver Price Forecast – Silver Gaps Higher to Kick Off the Week

By:
Christopher Lewis
Published: Mar 20, 2023, 14:26 GMT+00:00

Silver has gapped higher to kick off the trading week, but then turned right around to fill that gap almost immediately. At this point, we continue to see a lot of volatility.

Silver, FX Empire

In this article:

Silver Price Forecast Video for 21.03.23

Silver Markets Technical Analysis

Silver has gapped to the upside to kick off the trading week on Monday, but then pulled back almost immediately to fill that same gap. At this point, it looks as if the $23 level above could offer a bit of resistance, so you will need to keep that in the back of your mind. It’s a large, round, psychologically significant figure, and silver does like the idea of paying attention to these numbers.

Underneath, the 50-Day EMA sits just above the 200-Day EMA which is right at the $21.85 level. Both of these moving averages could offer support, not only due to the fact that we see so many technical traders out there paying attention to the moving averages, but also to that area as it has structurally been important multiple times and was even the scene of a gap back in December.

Silver is very volatile under the best of circumstances, and as we are paying close attention to the Federal Reserve this week, it’s likely that we would see wild swings, and that’s going to be exacerbated by a lot of people trying to get ahead of what they think the Federal Reserve is going to do at the end of the day on Wednesday. Furthermore, the silver market is highly sensitive to not only interest rates and risk appetite, but also the industrial demand for silver overall.

If we do break down below those moving averages, then I think we can look into the $21 level, which of course has been important multiple times in the past. To the upside, the $24 level has been major resistance, so I think it’s probably only a matter time before we see sellers come back into that area, but if we were to take that out, the $25 level looms large as well. I think you continue to see a lot of volatility and choppiness in this market going forward, and therefore you need to see some type of impulsive candlestick, preferably after the Wednesday session, to make a trading decision as to where we might be going for the next swing.

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

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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