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Silver Price Forecast – Silver Gives up Early Gain at The 200-day EMA

By:
Christopher Lewis
Published: Feb 22, 2024, 14:33 UTC

Silver initially tried to rally during the course of the trading session on Thursday, reaching the 200-Day EMA. Ultimately, this is a market that I think continues to see a lot of noisy behavior, but I also believe that there are plenty of buyers underneath.

In this article:

Silver Markets Technical Analysis

You can see that the silver market has tested the 200-day EMA yet again during the day on Thursday. The 200-day EMA is an indicator that a lot of people will be paying attention to, and it’s obvious to me that we have seen a lot of selling pressure there. If we do break down from here, I would actually welcome that as silver is likely to continue looking at the $22 level as a potential floor in the market. On the upside, we have the $23.50 level, which is also a barrier that I think will be difficult to overcome.

If and when we do, then it’s likely that the market could go looking to the $24.50 level. Keep in mind that silver is going to remain very noisy, with a lot of questions about central bank monetary policy around the world. And that of course has a major influence on precious metals. At this point though, it does look like we are trying to form a little bit of a double bottom underneath. And that double bottom I think is a situation where we just simply continue to find plenty of value hunters down there.

If we were to break down below the $22 level, then it’s very possible that we could go to the $21 level, but not really holding my breath for that. Expect a lot of volatility and a lot of choppiness, but I welcome a pullback. It should give me an opportunity to pick up cheap silver, and of course, also diversify away from the dollar, which likely is going to struggle, as well as many other fiat currencies this year due to central bank actions coming down the road. Ultimately, we also have to pay attention to industrial demand, but I think that is a very small part of the market at the moment as everybody is focusing on the Federal Reserve, the ECB, etc.

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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