Silver Price Forecast – Silver Markets Continue to Show Extreme Volatility

Silver Price Forecast Video for 03.05.23

Silver Markets Technical Analysis

Silver markets have fallen a bit during the trading session on Tuesday, as we continue to bounce around the $25 level. Ultimately, this is a market that has been extraordinarily noisy over the last several weeks, but I think at this point we have to make some type of decision sooner or later. It’s probably worth noting that we are at extreme highs right now so a little bit of a pullback would make a certain amount of sense. That does not necessarily mean that it would be a selling opportunity, just that we could make a move toward the 50-Day EMA. With that being the case, I would be a little bit hesitant to get overly aggressive, but waiting for signs of support after a pullback does make a certain amount of sense.

On the upside, the $26 level continues to be very important and I would have to pay close attention to it for a potential target and of course a potential resistance barrier. Breaking above that then opens up the possibility of $27. We have seen just how quickly silver can turn around during the Monday session, and that’s something you should keep in the back of your mind as this is an extraordinarily volatile market under the best of circumstances. If silver does start to break down rather rapidly, it doesn’t concern me too much until we break down below the $23 level. If we break that level, then a lot of support has been destroyed and it’s very likely that silver will continue to plunge.

The Federal Reserve meeting on Wednesday could be very crucial, because of the US dollar suddenly spikes, that could play havoc in the silver market as the 2 assets are typically negatively correlated. They do not have to be, but it is something that a lot of traders will pay close attention to, and are used to trading. That being said, it’s also worth noting that the triangle that we have been and seems to be holding, at least at the moment.

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