Silver Price Forecast – Silver Rallies to Wipe Out Previous Losses

Silver Price Forecast Video for 26.07.23

Silver Markets Technical Analysis

Silver has rallied a bit during the trading session on Tuesday to wipe out the losses for Monday. At this point, the $25 level above continues to be a significant psychological level, but we have gone back and forth through that level couple of times now, so whether or not it is going to end up being important in the longer term remains to be seen. At this point, you should keep in mind that we have central banks meeting this week, with the Federal Reserve on Wednesday, the European Central Bank on Thursday, and then the Bank of Japan on Friday.

Ultimately, this is a market that has a lot of upward momentum underneath it, so I do think it’s probably only a matter of time before we take off to the upside. If and when we do take off, the $25.50 level could be a little bit of a barrier on the way back to the $26.50 level. On a pullback, I anticipate that the 50-Day EMA should open up a significant amount of support, right along with the 38.2% Fibonacci level that currently sits there. After that, then we have the 200-Day EMA which sits right around the $23.25 region. Because of this, I think that will be the “floor in your market”, and therefore I’d be very surprised to see the market breakdown below there.

Longer term, I think this is a situation where you continue to see plenty of people willing to step in and buy on the dips, as silver has proven itself to be very bullish. We had recently seen a massive move higher, and a reasonable and contained pullback to attract value hunters. Clearly, the momentum was to the upside, and the pullback was more or less a gentle drift, telling me that there was no type of panic to the downside. I do believe that it is probably only a matter of time before we test the highs again, but of course you have to keep in mind that the central banks could change things and in an instant if they suddenly shock the markets, something that could very well happen between the 3 of them. Position sizing will be crucial.

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