Silver Weekly Price Forecast – Silver Gives Up All Gains for the Week

Christopher Lewis
Published: Feb 3, 2023, 18:23 GMT+00:00

Silver had initially tried to rally during the week, testing the top of the overall consolidation area. However, it has since plunged drastically.

Silver, FX Empire

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Silver Price Forecast Video for 06.02.23

Silver Weekly Technical Analysis

Silver had initially tried to rally during the trading week, reaching the top of the previous consolidation area. However, we have seen it turned around completely, showing signs of weakness. In fact, we managed to plunge below the $23 level during the Friday session, which of course is a major breakdown. After all, we had seen a lot of noisy behavior previously, and then with the jobs number coming out as hot as it did, that had a lot of people running towards the US dollar. This obviously has a negative influence on the silver market, as the negative correlation came into play.

At this point, I think it’s a situation where we are probably going to go look into the $22 level, where the 50-Week EMA currently sits. Ultimately, I think the $22 level is a very interesting area, due to the fact that the daily chart has a nice gap sitting there, and of course it’s an area that previously had been significant resistance, giving it a bit of “market memory.”

If we were to break down below there, then it’s likely that we could go down to the $21 level, but I don’t see that happening right away, and it would not surprise me at all to see a bit of a turnaround rather quickly. However, what would make even more sense would be that we kind of dance around the $21 level as we try to sort everything out, in a market that had been a little bit erratic until we got to this consolidation area, and now we have this nice pullback that offers value.

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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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