Silver Price Forecast – Silver Continues to Test the 50-Day EMA

Silver Price Forecast Video for 09.06.23

Silver Markets Technical Analysis

Silver rallied rather significantly during the trading session on Thursday as we continue to aim for the 50-Day EMA. Whether or not we can break out remains to be seen, but it certainly looks as if we are turning around and trying to restart the previous uptrend. If we break above the $24.25 level, I think the market goes looking to the $25 level over the longer term. Alternatively, I do think this is a situation where silver will eventually continue to see strength, but it’s probably going to end up being very noisy in the process. Alternatively, I think this is going to be very noisy, and therefore you need to be cautious with your position sizing.

Underneath, the 200-Day EMA is near the $23 level, and therefore I think will be something worth paying close attention to. Because of this, I think you’ve got the potential for high volatility, but right now I would be more apt to look for buying opportunities than selling opportunities, and therefore you need to look at this through the prism of trying to find value. The silver market has been used for wealth preservation as of late, because quite frankly the industrial demand is going to continue shrinking as we head into recession.

If we were to turn around and break down below the 200-Day EMA, it’s likely that the market could go down to the $22 level. The $22 level is a support level, but a minor one at that. I suspect that if we get down to that area, it probably sends this market down to the $20 level which would be a complete wipeout of the previous shot higher. Nonetheless, this is a market that I think continues to be very noisy, and you will have to look at and through that prism. Ultimately, I think silver is something you cannot short, and it’s probably only a matter of time before it takes off. I don’t have any interest in trying to get too cute with this market, but I do recognize that the market will continue to offer quite a bit of volatility, and therefore you need to be very cautious about trading it.

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