Silver Price Forecast – Silver Rallies to The 200-Day EMA

Silver Price Forecast Video for 06.11.23

Silver Markets Technical Analysis

The silver market was very bullish during the trading session on Friday, testing the 200-Day EMA. We are also at the top of a bullish flag, so that of course is very strong as well, and it looks like we are trying to go to the $24 level over the longer term. All things being equal, this is a market that has been extraordinarily resilient, and it looks like the $22.33 level is a reasonably strong support level, so I look at that as a short-term “floor in the market.”

In general, this is a market that I think will be very noisy, but that’s fairly typical of silver most of the time, which makes it one of the more difficult commodities to trade. After all, silver is being driven by geopolitical concerns, but at the same time it’s also an industrial metal, so there are a lot of things out there that can move it. Bonds also have a significant influence as well because that’s your “risk-free rate.”

If we were to break down below the $22 level, that opens up a significant selling opportunity, possibly kicking off massive selling. On the other hand, if we were to turn around and take out the $24 level above, this market will almost certainly go to $25 next, possibly even the $25.50 level. Ultimately, this is a market that I do favor to the upside, but I also recognize that you will have to keep the position sizing reasonable, which is generally good advice on silver anyway.

Ultimately, both the 50-Day EMA and the 200-Day EMA indicators are flat, and that can keep the market somewhat neutral for a while. I don’t necessarily think it stays that way for very long, but you can see that as we have been forming this flag over the last couple of weeks, silver has essentially gone nowhere. Markets don’t sit still forever, so therefore inertia is building up, and therefore, I think you get a situation where we could get a rather big move sooner rather than later. I like silver, but I’m not willing to put a ton of my money into it.

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