Silver Price Forecast – Silver Gets Crushed

Silver Price Forecast Video for 06.09.23

Silver Markets Technical Analysis

Silver has shown itself to be very anemic during early trading on Tuesday, as traders have come back into the market and bought the US dollar hand over fist. This of course typically will work against the silver market, so it’s probably worth paying close attention to. With that being the case, we are sitting at the 50-Day EMA, which of course is a technical indicator that a lot of people pay attention to anyway. Bouncing from here would make a certain amount of sense, but it also can be thought of as quite normal if we were to continue falling, considering that we are in the midst of a massive consolidation area. The market has been stuck in the same consolidation area for the last 6 months now, so it all lines up pretty well.

On a break down from here, we could go looking to the $22.50 level, which of course is the bottom of the consolidation area, and something that has to be paid close attention to. On a break to the upside, then we will have to pay close attention to the $25.50 level, as it is a major resistance barrier that the markets have struggled with. Anything between those 2 could bring in a lot of noise, so keep in mind that position sizing will be crucial as the silver market has a long history of causing headaches for traders.

Pay close attention to the US dollar and interest rates in America, because they do have a negative correlation to what happens in silver. Ultimately, I do think that you have a situation where eventually we will have to make a bigger decision, but right now it looks like we are perfectly comfortable just hanging around and doing nothing. Ultimately, volatility is probably the only thing that you can count on this week, so be cautious, because your trading account may very well depend on the next couple of days as the volatility picks up with more volume flooding into the markets.

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