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Silver Price Forecast – Silver Tests Bottom of Massive Range

By:
Christopher Lewis
Updated: Feb 14, 2024, 13:20 GMT+00:00

The silver market tested the crucial $22 level during the trading session on Wednesday, which is an area that has been crucial multiple times in the past.

Silver bullion, FX Empire

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Silver Price Forecast Video for 15-02-2024

Silver Markets Technical Analysis

Silver tested the $22 level during the trading session on Wednesday, but it looks like it is holding though. And if that’s going to be the case, then I think we’re just simply going to stay in that same range that we have been in. With that being the case, I look at this as a potential buying opportunity.

But keep in mind that silver is extraordinarily volatile, and you do have to be cautious with it. I would not jump all in with both feet right away. That being said, it does make a certain amount of sense that we would see a little bit of stability in this area where the market has seen so much in the way of support over the last several months. So, with that being the case, I like the idea of stepping in and I do suspect that eventually we may try to get to the $23 level. That being said, if we do break down a little bit lower to the $21.80 level, then I think we drop to the $21 level.

Silver of course is greatly influenced by the interest rate markets, the US dollar and industrial demand. At this point, we are at such an extreme low in the overall consolidation, that this is more or less going to be a technical setup, not necessarily a fundamental one. Having said that, caution is the better part of valor, so you again will need to keep your position size somewhat reasonable.

If we were to break above the $23.25 level, then I think a certain amount of FOMO comes into the picture and traders will continue to push this market much higher. If that were to happen, you would probably see a weakening US dollar simultaneously, and of course gold would follow right along as the 2 markets tend to move in the same direction over the longer term. That being said, position sizing is something that I cannot stress enough.

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

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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