Silver Price Forecast – Silver Pulls Back to Kick Off the Week

Christopher Lewis
Updated: Jun 5, 2023, 14:54 GMT+00:00

Silver has fallen during the trading session on Monday, to kick off the week on the wrong foot.

Silver, FX Empire

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Silver Price Forecast Video for 06.06.23

Silver Markets Technical Analysis

Silver has fallen a bit during the trading session on Monday to kick off the week on the wrong foot. That being said, we are still hovering around the 50% Fibonacci level, and of course between the 50-Day EMA and the 200-Day EMA indicators, suggesting that there is probably a bit of a squeeze ahead. Remember, when we trade between these 2 indicators a lot of times that does mean we are about to see a bigger move, and therefore I think a little bit of patience may go a long way when trading silver at this point.

If we were to turn around and break down below the 200-Day EMA, it opens up the possibility of a move down to the 61.8% Fibonacci level, and then possibly the $22 level. Anything below there opens up a much bigger move down to the $20 level, and would probably coincide with the strengthening US dollar. On the upside, we have the 50-Day EMA just above the $24 level and falling, so that causes a little bit of resistance.

If we do break above there, then it’s likely that the silver market will go looking to get to the $25 level which of course is a large, round, psychologically significant figure that attracts a lot of attention. With this, I think it’s probably only a matter of time before traders start to look at this through the prism of whether or not we have pulled back enough to bring in value hunting. If so, then it’s likely that the market will bounce rather significantly, perhaps trying to reach the highest again.

Regardless, I would be very cautious with my position sizing, due to the fact that the market is very noisy under the best of circumstances, as silver has not only the precious metals aspect to think about, but also the industrial metal aspect as well. In other words, it’s not as clean of a play as gold is in this type of environment, but it certainly has its place in this environment. Be diligent, and take your time putting on positions, because once we break out of these moving averages we should have rather large moves ahead.

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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