Silver Price Forecast – Silver Markets Continue to Look for Buyers

Silver Price Forecast Video for 03.03.23

Silver Markets Technical Analysis

Silver has dipped during trading on Thursday, after we have seen a significant amount of noisy behavior in general. That being said, the market is likely to continue seeing a lot of volatility in this general vicinity, as it had previously been both support and resistance. A certain amount of “market memory” will have to come into the picture, and therefore traders will look at this through the prism of both buying and selling possibilities.

The $20.50 level seems to be rather supported, and therefore it will be interesting to see if we can break down below it. If we did, that would obviously be very negative, and could send this market down to the $20 level, which would capture a lot of attention as it is a large, round, psychologically significant figure. In that area, I would expect to see a bit of a fight as a lot of options will also come into play as well, as options traders will step into the market. Anything below the $20 level would be rather negative, and I think at that point in time you would probably have quite a bit of negativity in this market, sending prices much lower.

The alternative scenario is that we break above the tiny shooting star for the trading session on Wednesday, opening up the possibility of the market retesting the 200-Day EMA. The 200-Day EMA sits just below the psychologically important $22 level, so I do look at that is an area where a lot of people will be enticed back into the market. Breaking above that area would be a significant victory for the bulls, but I would also point out that we had seen a nasty selloff just above there, and I think that any move above there would probably be slow going at best.

When trading silver, you also have to keep in mind that there is a certain industrial component that you have to worry about as well, as silver is not just the precious metal, but an industrial one. If the global economy is slowing down, that will keep a bit of a lid on pricing when it comes to silver.

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