Silver Price Forecast – Silver Takes Off Again

Christopher Lewis
Published: Nov 27, 2023, 13:59 GMT+00:00

The silver market has rallied rather significantly during the Monday session, as it looks like we are now racing toward the highs again.

Silver coin, FX Empire

In this article:

Silver Price Forecast Video for 28.11.23

Silver Markets Technical Analysis

Silver has rallied rather significantly during the trading session on Monday, as we continue the big move from Friday. As we broke above the $24 level, we have seen a lot of buyers jump into this market, perhaps in the “FOMO trade” that silver tends to bring in from time to time. After all, silver does tend to be extraordinarily volatile, and therefore you need to be cautious with your silver position size.

Short-term pullbacks at this point should be buying opportunities, especially with the obvious support level underneath. The 50-Day EMA is starting to cross back above the 200-Day EMA, so we could also start to see some longer term traders look at this through the prism of having the “golden cross” kickoff. I think short-term pullbacks will offer opportunities and that’s probably the best way to trade this market.

However, you have to keep in mind that the markets will be very cautious when it comes to the momentum, and of course silver has a lot of external effects in its markets. For example, interest rates in the United States have a major negative correlation. If interest rates in the US start to climb, that could put a little bit of negativity in this market. On the other hand, if those rates continue to drive, that could also add more demand for silver in order to protect well. Beyond that, silver is also an industrial metal, so a lot of this will come down to perceived demand around the world.

In general, this is a situation where I think you see a lot of volatility, but you need to find value in order to get involved. Chasing the silver trade all the way up in this area is probably going to be very difficult. As far as selling is concerned, I don’t really have any interest in doing so at the moment, due to the fact that the momentum is so strong and therefore it’s likely that we continue to see this as a market that we need to see some type of value in order to get involved, which of course would come in the form of a dip.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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