Silver Price Forecast – Silver Drops Toward Bottom of Consolidation

Silver Price Forecast Video for 08.11.23

Silver Markets Technical Analysis

Silver has fallen during the trading session on Tuesday, reaching toward the bottom of the overall consolidation that the market has been in. Ultimately, precious metals in general got hit during the day, as the US dollar strengthened quite a bit. Furthermore, interest rates in America picking up has offered a bit of a reason to start selling, and then of course you have the entire situation in the Middle East, staying basically stable. While it’s not a good one, it has not brought Iran into the war, which is what most people were concerned about.

At this point, some type of support and bounce would be expected, but I would not try to front-run the trade, I would wait for the market participants to try to pick this market up before getting involved. I don’t look at this as some type of major opportunity, just a simple consolidation and range bound play. Silver is typically very choppy to begin with, so that would make quite a bit of sense.

We have been in a bullish flag for some time, but it doesn’t look like we’re quite ready to break out of it. If we did and dropped below the $22.50 area, that could open up and move down to the $22 level rather quickly. Anything below there opens up quite a bit of selling pressure as the market will almost certainly drop down to the bottom of the flag near $21. Alternatively, if we can break above the top of the flag that the market is currently in, the $24 level would be targeted initially, followed by the $25.25 level.

Silver is a very volatile market under the best of circumstances, and right now there is a lot of confusion out there to make sure that it is even more volatile than usual. Because of this, you need to be very cautious and cognizant of what you’re doing, keeping your position size reasonable, and recognizing when the market is breaking out of its well-defined consolidation area. Silver has a bad habit of jumping wildly from time to time, and therefore it can be a very dangerous market if you are not cautious and take care of what you have the ability to take care of.

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