Silver Price Forecast – Silver Markets Attempt to Stabilize
Silver Price Forecast Video for 04.10.23
Silver Markets Technical Analysis
Silver has initially fallen rather steeply during the trading session on Tuesday but has seen a significant amount of buying pressure just before the Americans got on board. This suggests that perhaps there is a lot of profit-taking, which makes sense considering just how negative the market has gotten. By turning around the way we have, it does suggest that perhaps there is some fight left in this market. Regardless, markets do not go in one direction forever, so it does make quite a bit of sense that we bounce from here.
Having said that, it’s not necessarily that silver is going to be a screaming buy at this point. It’s more or less a situation that if you had followed my analysis and shorted this market, it’s time to get out. If you are not in this market and are willing to attempt to ride the recovery, that’s fine, but recognize that you need to be very cautious with your position sizing.
When looking at this chart, it’s easy to see that we are overextended, but that doesn’t necessarily mean that anything has changed. Keep in mind that silver is highly sensitive to risk appetite and of course interest rates, both of which are causing major problems. The $22.50 level has previously been major support, so I do anticipate that “market memory” will come into the picture at that point, and traders will almost certainly have to pay attention to any pushback in that general vicinity.
I suspect at this point, it’s probably more or less going to be a “fade the rally” type of market, assuming that we can even get to that area. If we were to break down below the bottom of the candlestick, that would obviously be very negative as it would be yet another layer of support that has been destroyed. At that point, I would fully anticipate that silver goes looking to the $20 level underneath, which of course is a large, round, psychologically significant figure, and an area where a lot of people would be tempted to jump in and start picking up “cheap silver.”
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