Silver Price Forecast – Silver Rallies After PPI

Silver Price Forecast Video for 15-01-2024

Silver Markets Technical Analysis

Silver has rallied pretty significantly during the trading session on Friday as the PPI numbers came out cooler than anticipated suggesting that perhaps the Federal Reserve is getting a grasp on the inflationary headwinds and perhaps could start to cut rates. That being said, the market is likely to continue to be very noisy, because quite frankly, traders are extraordinarily confused at the moment, and I just don’t see that changing very easily.

Ultimately, this is a market that I think is positive in general, but we also have to keep in mind that there is so much noise out there that you have to be very cautious with your position sizing, something that is quite common in the silver market anyway. The position sizing is without a doubt the only thing you can do to protect yourself in a market that does tend to be very difficult to deal with at times because of its inherent volatility.

That being said, I think more likely than not, we are reacting to the fact that we are closer to the bottom anyway. The $22 level underneath continues to be a major support level, and I think that holds a longer term support level as well. The 200 day EMA being broken is probably a minor resistance barrier, but if we can break above the 50 day EMA, then we could go much higher. Perhaps reaching the $24.50 level, breaking above $24.50, then opens up the possibility of the $26 level, which is the top of the longer term trading range.

Silver, of course, also has industrial aspects to it as well, not just precious metals, so pay attention to that. Also, the idea, of course, being that the Federal Reserve is going to juice the economy probably gets people in the industrial sector going a little bit aggressive as well. Regardless, this is a market where you continue to buy on dips, and you have to be very cautious with your very small positions and then build up from there. That being said, I think you’ve got a situation where you just take advantage of value as it occurs.

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