Silver Price Forecast – Silver Continues to Find Buyers on Short-term Dips

Silver Price Forecast Video for 03.07.23

Silver Markets Technical Analysis

Silver has plunged a bit during the trading session on Friday, but then turned around to show signs of life again. We continue to fight against the 200-Day EMA, which sits just above. If we were to break above the 200-Day EMA, it opens up the possibility of a move to the 50-Day EMA, near the $23.70 level. Break above that would obviously be very bullish, but I don’t necessarily expect to see that happen easily. On the other hand, if we were to break down below the lows of the last couple of candlesticks, it could open up a move down to the $22 level. The $22 level being broken to the downside certainly opens up the possibility of a move down to the $20 level.

All things being equal, this is a market that is trying to find its footing, and it will continue to see a lot of noisy behavior. With this, I think you’ve got a situation where the market is going to see a lot of volatility, but that’s nothing new when it comes to silver. Silver also has to worry about the global economy, as it is an industrial metal so that will cause quite a bit of noise as well.

When I look at this chart, it looks as if it is in a state of flux, and that means we could get sudden and erratic moves. However, when we have pulled back recently, it has been rather brutal, and it opens up the possibility of a deeper correction. Keep in mind that silver tends to underperform gold, so we need to pay close attention to the gold market as a secondary indicator. For what it is worth, gold does look as if it is trying to rally, so that might drag the silver market right along with it. All things being equal, I think you have a lot of noise ahead of you, so you need to be very cautious with your position sizing, as it could be a big problem if you get caught on the wrong side of the next impulsive move in the silver market.

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