Silver Price Forecast – Silver Gets Hit on Tuesday

Silver Price Forecast Video for 08.03.23

Silver Markets Technical Analysis

Silver has fallen rather significantly during the trading session on Tuesday as we continue to see the negative correlation between the US dollar and silver play out. After all, the greenback had seen a bit of strength during the day, so it certainly makes quite a bit of sense that silver would suffer as a result. Furthermore, we had recently seen a lot of selling pressure, and therefore it makes quite a bit of sense that we would see this market continue to drop toward the $20 level.

It’s worth noting that the $20 level is the 61.8% Fibonacci level, and therefore it makes quite a bit of sense that the trading community will be paying close attention to that area, as it is a large, round, psychologically significant figure and of course a Fibonacci level that a lot of people pay close attention to. Furthermore, we also have the moving averages near the $22 level, which of course will attract a certain amount of attention. This includes the 50-Day EMA, and of course the 200-Day EMA. If the 50-Day EMA breaks down below the 200-Day EMA, then it kicks off a “death cross”, which of course is a very bearish negative technical signal for longer-term traders.

That being said, if the market were to turn around a break above the $22 level, silver would almost certainly take off, perhaps trying to fill the massive gap in trading that occurred just below the $24 level. The $24 level of course is an area where a lot of people would be paying close attention to the fact that we had sold off from, and of course the $25 level above there is a large, round, psychologically significant figure that also attracts quite a bit of attention, both from a psychological standpoint, and of course from a historical standpoint as the $25 level has caused quite a bit of selling pressure multiple times in the past. However, if we were to finally break above there, it could kick off a massive, short covering rally, as we saw during the last major financial crisis in 2008. More likely than not though, if we break down below the $20 level, we could open up a move down to the $19 level.

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