Silver Price Forecast – Silver Trying to Build a Base

Silver Price Forecast Video for 22.02.23

Silver Markets Technical Analysis

Silver has gone back and forth during the trading session on Tuesday, as we continue to see a lot of noise just below the 200-Day EMA. The 200-Day EMA is quite often followed by technical traders, so it does make a certain amount of sense that people will be paying attention to it. Furthermore, the 200-Day EMA sits right around the $22 level, which is a large, round, psychologically significant figure, and an area where we had seen a gap in the futures market, thereby attracting a lot of attention as well.

The candlestick from the trading session on Monday was a hammer, testing the 50% Fibonacci level. The 50% Fibonacci root level causing the market to form a hammer is a very positive sign, so now all we need to see is enough momentum to break above the 200-Day EMA. At that point, the market then probably goes looking to the 50-Day EMA, and then possibly even the $23.50 level. That being said, the recent selloff had been rather brutal, so it’s not a huge surprise that we are a bit choppier in this area, because if we do in fact see the uptrend continue, it takes a lot of work to turn around from that massive selloff.

Furthermore, you need to pay close attention to the US dollar, because there is a negative correlation between the 2 assets typically, but it does not necessarily have to be the case. After all, silver is an industrial metal, so you need to pay close attention to whether or not there is going to be a significant amount of industrial demand for it.

If the economy is slowing down, that works against silver, but there’s also the counterargument that traders may be using it in order to preserve wealth. This is part of the major problem with silver right now because there are so many different moving pieces. From a technical analysis standpoint, it certainly looks as if we are trying to do everything we can to turn around and bounce to the upside.

For a look at all of today’s economic events, check out our economic calendar.