Silver Price Forecast – Silver Shows Signs of Hesitation

Silver Price Forecast Video for 05.05.23

Silver Markets Technical Analysis

Silver has gone back and forth during the trading session on Thursday as we may be showing signs of exhaustion, and therefore we are getting close to the overall highs. At this point, a short-term pullback makes a certain amount of sense as it could give buyers an opportunity to pick up a little bit of value. After all, silver has been extraordinarily strong for quite some time, and therefore I think a little bit of working off of the froth makes sense.

Underneath, the $25 level should be significant support, as we have seen multiple times. This of course assumes that there is no opportunity to drift that low. On the other hand, the market then goes to the upside, then the market could go looking to the $27 level. Looking at this chart, the market has recently formed a bullish pennant, and now looks as if it is doing everything it can to build up the necessary momentum to get a move to the upside. The $27 level would be the next target, but the “measured move” could be as high as $31.

Keep in mind that there are a lot of concerns around the world as wealth preservation becomes one of the biggest factors in trading. Furthermore, the Federal Reserve may have just had its last interest rate hike, so that could cool off the US dollar. After all, there is a significant amount of noisy behavior overall, so you need to be very cautious with silver as it is very difficult to hang onto in this type of situation.

On the other hand, if we were to turn around and break down below the $24.70 level, then it’s possible that we could go down to the 50-Day EMA, which is just a bit above the $24 level. The $24 level is the middle of the previous consolidation region, so I think that all comes into the picture as potential support, assuming that we get anywhere near breaking down that far. I suspect there remains a strong “buy on the dip” attitude out there among silver traders.

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