Silver Price Forecast – Silver Looking for Support

Christopher Lewis
Published: May 30, 2023, 15:00 UTC

Silver fell during the early hours of trading on Tuesday but seems to be finding support as we are sitting just above the crucial 200-Day EMA.

Silver, FX Empire

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Silver Price Forecast Video for 31.05.23

Silver Markets Technical Analysis

Silver has fallen initially during the session on Tuesday but seems to be finding plenty of support as we are sitting just above the 200-Day EMA, and the last couple of days have been at least somewhat supportive. Keep in mind that the market has sold off quite drastically, and we are hanging about the 50% Fibonacci level, which of course will attract a certain amount of attention by itself.

However, it’s also worth noting that the market has the 61.8% Fibonacci level just below it, and that in and of itself will probably attract quite a bit of attention also. With this, I think it’s probably only a matter of time before we see a recovery, but the real question is going to be whether or not we can break above the 50-Day EMA, sitting just above the $24 level. If we can, then the silver market should continue to recover, perhaps running toward the crucial $25 level. I think given enough time that’s exactly what happens, but I don’t have enough in the way of a recovery yet to make that statement with any real conviction, not the least of which would involve buying the market itself.

With this, I am patiently waiting to see whether or not we get another impulsive move to the upside, because if we do, then I think it will bring in a lot of “FOMO trading.” Remember, silver is extraordinarily impulsive and noisy to say the least, so in this environment it would not surprise me at all to one day wake up to a huge candle in one direction or the other.

Pay attention to the bond markets, because if monetary policy remains tight, that could work against silver, and of course silver is also an industrial metal so that has its part to play in this market as well. With that, I would anticipate a lot of volatility going forward, so keep your position size reasonable as we continue to operate in a market that could be very dangerous. That being said, we should get some type of conclusion rather soon.

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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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