Silver Price Forecast – Silver Continues to Consolidate Around 200-Day EMA

Silver Price Forecast Video for 10.07.23

Silver Markets Technical Analysis

Silver has initially pulled back just a bit during the trading session on Friday, but turned around as the jobs report in the United States came out weaker than anticipated. By doing so, it put a little bit of pressure on the US dollar, which then allows silver to rise. With this being the case, it looks like we are hanging around the 200-Day EMA, and essentially nothing has changed.

This does make a certain amount of sense considering that the ADP number had been so strong, which had people thinking that the jobs report could be the same as well. However, it was a disappointing number and therefore the US dollar took a little bit of a head. That being said, when you look into the inner workings of the report, you can see it is a little bit of a mixed bag as hourly wages did rise just a bit. In other words, I suspect that not much will have changed by the time it is all said and done.

We are currently between the 200-Day EMA and the 50-Day EMA indicators, which typically means that we are going to squeeze. If we can take out the 50-Day EMA to the upside, we could go look into the $24.25 region, perhaps even allowing the market to rally all the way to the $25 level. On the other hand, if we turn around and break down below the $22.33 level, it opens up the possible move of silver dropping down to the $22 level.

Any breakdown below that level opens up the possibility of a move down to the $20 level as we will have given up the 200-Day EMA, the 61.8% Fibonacci level, and of course the psychologically and structurally important $22 level. In other words, a lot of negative pressure will have entered the market. In the short term though, I anticipate that we are going to go back and forth, suggesting that we have no clarity at the moment, but it certainly looks as if at least the buyers are putting up a significant fight.

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