Silver Price Forecast – Silver Bounces From the 200-Day EMA

Silver Price Forecast Video for 07.08.23

Silver Markets Technical Analysis

Silver initially fell during the trading session on Friday, touching the 200-Day EMA before seeing a significant amount of bullish pressure. After all, the market is going to continue to be looking at the debt issued by the US government over the next couple of months, reaching over $1 trillion. That should put a bit of a floor in precious metals anyways, and therefore I think it makes a lot of sense that we turn around and start to rally. This is the second hammer being formed in a row on the daily chart, so that’s obviously a very bullish sign.

That being said, if we were to break down below the bottom of the candlestick from the Friday session, that would be an extraordinarily negative sign. I doubt that happens, but it’s something that you do need to keep in the back of your mind just in case. With this, I think you got a situation where a lot of value hunters are starting to come back into the situation right now and the picture and therefore we should eventually see some momentum.

If we take out the 50 day EMA above, then I think you’ve got a shot where the market could really start to take off to the upside. The market breaking above the 50 day EMA opens up the possibility of a move all the way to the $25 level, something that’s very possible. The $25 level of course will offer a line of resistance, so if we break above there then we could really start to see a lot of FOMO trading come into the picture.

Either way, pay close attention to the US dollar and interest rates, because they do have a negative correlation to the silver market, although you also have to worry about the potential industrial demand issues that could come out if we have some type of major recession worldwide. In other words, silver will remain volatile, but right now it looks like we are going to be very bullish in general, but you need to find little bits and pieces of value if you can.

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