Silver Price Forecast – Silver Continues to Find Support Underneath

Silver Price Forecast Video for 27.09.23

Silver Markets Technical Analysis

Silver has initially fell during the trading session on Tuesday to reach down toward the $23 level, but as things stand, it looks like we are trying to turn around and show signs of life. If we can break above the 200-Day EMA, then the market could go much higher, as we continue to see a lot of support underneath in a market that has obviously been very noisy for some time. Alternatively, the $22.50 level underneath is a massive support barrier, and of course we have a lot of noise between here and there.

On the other hand, if the market were to take off to the upside, then the $25.50 level then becomes the ceiling above. All things being equal, this is a market that I think continues to see a whole lot of noisy behavior, therefore I think the best thing you can do is keep your position size reasonable. Ultimately, this does look like a market that’s trying to form some type of short-term basing pattern, but we also have to worry about interest rates.

As interest rates rise, it makes riskier investments such as silver a lot less attractive. After all, you can get paid to simply sit still in the Treasury market, instead of taking on a lot of volatility. Silver is volatile under the best of conditions, and right now we are definitely not in the best of conditions. However, it does look like we have a short-term bounce in play, so short-term traders will probably take advantage of that opportunity. In general, this is a scenario where the volatility continues to cause a lot of headaches, so you do need to be cautious, but position sizing can keep you out of a lot of trouble.

The US dollar of course has a negative correlation with this at times as well, so that will be something that is worth paying attention to. Ultimately, this is a scenario that I think the short-term traders will continue to love, but for those of you that are trying to trade longer-term, you will have to have your position size reasonable so that you can hang on to the various fluctuations that you are getting ready to see.

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