Silver Price Forecast – Silver Markets Plunge Toward Bottom of Range

Christopher Lewis
Published: Jan 27, 2023, 17:06 UTC

Silver markets have been hammered during the Friday session, as we continue to trade in the same range we’ve been in.

Silver, FX Empire

In this article:

Silver Price Forecast Video for 30.01.23

Silver Markets Technical Analysis

At this point, silver has a well-defined trading range that has been in for several weeks, so therefore I don’t see any need to try to get too cute with this position. I think the $23.50 level makes a certain amount of sense, as it has been so supported in the past that I use it as a buying area. On the other hand, it’s also worth knowing that the $24.50 area has been extreme selling in the past, so it does make a certain amount of sense that we would see it come into the picture as a target.

All things being equal, this is a market that stays range bound at the moment, and of course will have a certain amount of influence from the US dollar. However, I think we’ve also got a situation where you need to keep in mind that silver is extraordinarily volatile, so you need to keep your position size reasonable. That’s probably sage advice anytime you trade silver, because I’ve seen it cause a lot of damage to retail accounts.

If we do break down below the bottom of the box that I have drawn on the chart, you can also pay attention to the 50-Day EMA which is sitting right at the $23 level. That would be the gateway to much lower pricing if we do in fact break down below it. However, I don’t see that happening anytime soon, I think we are still trying to find out where the next move is. Keep in mind that the $25 level above has been like a brick wall multiple times throughout history.

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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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