Silver Price Forecast – Silver Rallies Significantly

Silver Price Forecast Video for 18.08.23

Silver Markets Technical Analysis

Silver has rallied rather significantly during the trading session on Thursday, as the $22.50 level continues to offer plenty of support. The 61.8% Fibonacci level of course is an area that a lot of traders pay close attention to, and of course is the bottom of the overall range that we have been in. The market looks like it is forming a double bottom, and this of course will have a lot to do with where we go next.

It’s worth noting that as I record this video, we are testing the top of the inverted hammer from the previous session, and if we can break above it, it opens up the possibility of a move to the 200 Day EMA, which is near the $23.25 level. If we can break above there, then the market could go much higher. It could in fact go all the way back to the $25.25 level, which is the top of the overall consolidation range that we have been in. It is probably worth noting that the US dollar has been very soft during the trading session, and that has given a little bit of a boost for silver. All things being equal, there is a very negative correlation between the silver and the US dollar markets most times, so therefore if we see the US dollar continue to fall, that could help silver.

On the other hand, if the US dollar starts to strengthen a bit, something it could do as the Federal Reserve has reiterated its desire to be strong with its monetary policy. Whether or not that holds up remains to be seen, but the market is likely to see a lot of back and forth, and therefore I think you will have to be very cautious with your position sizing. If we were to break down from here, the $22 level is a support level, and breaking down below there we could see the market drop all the way down to the $20 level. Based upon the candlestick that we have seen for the Thursday session, it looks like we are going to make a serious attempt to break out to the upside.

For a look at all of today’s economic events, check out our economic calendar.