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Silver Price Forecast – Silver Markets Get Clobbered

By:
Christopher Lewis
Published: Feb 3, 2023, 17:18 GMT+00:00

Silver has been absolutely clobbered during the trading session on Friday, as the jobs number in the United States came out hotter than anticipated.

Silver, FX Empire

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Silver Price Forecast Video for 06.02.23

Silver Markets Technical Analysis

Silver has been absolutely crushed during the trading session on Friday, as the jobs number in the United States came out much hotter than anticipated. At this point, it looks as if the market is trying to reach down toward the gap underneath, which is right around the 200-Day EMA. The 200-Day EMA is also at the $22 level, so it all comes together quite nicely for potential buying area. Whether or not that actually ends up being the case is a completely different question, but at this point it’s hard to argue with the negativity of the candlestick for the session.

At this point, I do believe that there are plenty of buyers underneath that are more than willing to step in and take advantage of this situation. If we were to break down below the 200-Day EMA, that would obviously be very negative, therefore it’s likely that we would see even more selling pressure, perhaps opening up a move down to the $21 level, an area that previously had been supported. Anything below there would be the end of the uptrend for silver. I don’t necessarily think that’s going to be the case anytime soon, but it is something that we need to keep in the back of our minds, because these types of massive moves typically lead to something a bit bigger.

At this juncture, we are trying to close at the very bottom of the candlestick, so that typically means that there will be a bit of follow-through given enough time. I do anticipate that there is going to be a lot of noisy behavior, so you need to be very cautious, but I do think that given enough time there are plenty of buyers out there willing to jump on that longer-term uptrend that we have seen.

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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