Silver Price Forecast – Silver Continues to Plunge

Silver Price Forecast Video for 27.02.23

Silver Markets Technical Analysis

Silver has fallen rather hard during the trading session on Friday, as it looks like everybody is running to the US dollar heading into the weekend. Silver of course is very sensitive to the US dollar and has a major negative correlation to that currency. This makes sense, because silver is not only a precious metal, but it’s also an industrial one. There are a lot of concerns out there that the global economy is about to slow down, and that will lead to a lot less demand for silver.

While I am not suggesting that silver is going to absolutely implode, it certainly looks weak at the moment. Short-term rallies will be looked at with suspicion, especially with the 200-Day EMA sitting just below the crucial $22 level. We had failed there previously, and I think that we will more likely than not continue to see that offer quite a bit of a barrier. If we can break above there, obviously that would change some things, but right now there is nothing suggesting that we are ready to do that. Furthermore, we are trying to break down below the bottom of the support area that was based upon the 50% Fibonacci, and we are just pennies away for making that happen.

If we do break down below there, then it’s likely we really start to sell off, perhaps with an eye on the 61.8% Fibonacci level at the $20.25 area, possibly even then opening up a move down to the $20 level. The $20 level is a large, round, psychologically significant figure that a lot of people pay attention to, so therefore I would expect a certain amount of noise in that general vicinity. Anything below there could open up the floodgates of the downside, but right now I don’t necessarily think that’s where we are going.

On the other and, if we were to take out the 200-Day EMA above, it might bring in fresh buying, but right now things look so negative in this chart that I think it would take a Herculean effort to make that happen. It appears that traders are finally coming to grips with the idea that the global economy may be heading into a recession.

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