Silver Price Forecast – Silver Pulls Back on Tuesday

Silver Price Forecast Video for 02.08.23

Silver Markets Technical Analysis

Silver pulled back just a bit during the trading session on Tuesday, as we continue to consolidate in general. I think at this point, the market is likely to continue to see a lot of volatility, which is typical for silver anyway. After all, the market is going to be noisy under the best of circumstances, but as we are trapped between the 50-Day EMA and the $25 level, it does make a certain amount of sense that we could see a lot of noise, and therefore I think you got a situation where you have to look at this through the prism of trying to figure out what we are going to do longer-term.

If we were to break down below the 50-Day EMA, then the market could drop down to the 200-Day EMA. The $23 level is crucial, and if we were to break through that, it’s likely that we test the $22.50 level, and then perhaps even down to the $20 level. That being said, there seems to be a lot of support out there for this market, and therefore you need to pay close attention to the idea that the market may continue to offer “buy on the dip” opportunities. Another thing to pay close attention to is a negative correlation to the US dollar, so pay attention to the US Dollar Index.

All things being said, I think we continue to bounce around as we wait for the jobs number on Friday, as it could give us a huge heads up as to what the Federal Reserve may do. Either way, keep your position size reasonable, as silver markets tend to be very noisy and can cause major headaches if you are not careful. Because of this, market participants need to understand that it’s very difficult for traders to hang onto huge positions so scaling into a position might be the best way forward, and therefore you may want to take it slow. I do favor the upside overall, but I also recognize that later this week, especially on Friday, we could get shaken out rather viciously if we were not careful.

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