Silver Price Forecast – Silver Continues to Watch The $22 Level

Silver Price Forecast Video for 31-01-2024

Silver Markets Technical Analysis

Silver pulled back just a bit during the trading session in the early hours on Tuesday as the 200-day EMA has offered a significant amount of resistance. At this point, the market is likely to continue to see a lot of noisy behavior, but quite frankly, we are in the bottom quintile of the overall consolidation phase, with the $22 level underneath being the bottom of the larger consolidation phase. The $22 level, I think, should hold, as seen over the last couple of years, so any pullback at this point is an opportunity to pick up a little bit of value.

If we turn around and rally to break above the $23.50 level, then we could go to the $24.50 level, and then possibly reach $26, which I see is the top of the overall consolidation pattern. Pay close attention to how the markets react on Wednesday because quite frankly, the FOMC meeting and perhaps even more importantly, the press conference after that meeting, will give us an idea of what the monetary policy is going to be this year as the Federal Reserve and interest rates have a massive influence on silver. The higher the interest rates, the less likely you are to see rallies in the silver market. If interest rates do get cut multiple times this year and the market believes it’s going to happen, that does generally help silver.

Silver is also an industrial battle though, so there’s also an idea of whether or not industry is going to be picking up. Regardless, when you look at the longer-term charts, the area between $22 and $26 above has been most of the battlefield for the last three years, and there’s nothing on the chart that tells me this is going to change anytime soon. Because of this, you need to pay close attention to the outer edges of the consolidation as they can give you a nice trade setup, and at this point as we are closer to the $22 level, I am a buyer of dips.

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