Silver Price Forecast – Silver Sits Just Above the 50-Day EMA

Silver Price Forecast Video for 31.07.23

Silver Markets Technical Analysis

Silver has stabilized a bit during the Friday session as we gapped lower, only to turn around and bounce a bit. That being said, we are sitting on top of the 50-Day EMA, which of course is a massive indicator that a lot of people pay close attention to. The $24 level sits just underneath there, and of course the 38.2% Fibonacci level is in the same neighborhood. In other words, there are a lot of things out there that could keep silver somewhat afloat, but I would not jump in with both feet right now.

The biggest problem that you have in silver is that it tends to be very noisy, therefore you need to be very cautious with your position sizing. With that being said, the market is likely to continue to see a lot of noisy behavior, and therefore when it comes to jumping into this market, you need to be more of a gradual trader than anything else. You don’t want to jump in with a huge position right away, because silver has a bad habit of making erratic moves.

If we were to break down below the $24 level, it opens up the market for a drop down to the 200-Day EMA, which is currently near the $23 level. It is at that area that the market needs to fight in order to keep the uptrend alive. If we end up seeing a move below there, then things could get rather ugly for silver. Keep in mind that silver and the United States dollar tend to have a negative correlation, so that’ll be worth paying attention to as well.

This was certainly the case on Thursday, as the US dollar strengthened against most currencies, and of course silver fell. Whether or not that is a one off or it is something that has a little bit of momentum remains to be seen, but right now it certainly looks as if we are still trying to break out to the upside although I anticipate that we probably have quite a bit of noisy trading ahead of us, so I don’t necessarily think that you need to jump into the market right away, but if you do start to build a position, caution is the better part of valor.

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