Silver Price Forecast – Silver Gives Back Gains

Silver Price Forecast Video for 05.06.23

Silver Markets Technical Analysis

The silver market initially rally during the trading session on Friday to reach the 50-Day EMA early during the session. That being said, the market is likely to see a little bit of a pullback at this point, therefore it makes quite a bit of sense that we would pullback in order to determine whether or not we can break out above this squeeze between the 50-Day EMA in the 200-Day EMA. On the other hand, if we were to break above the 50-Day EMA, then it’s possible that we could looking to the $25 level, which of course is a large, round, psychologically significant figure, and of course an area where the market had seen quite a bit of support previously.

If we break down below the bottom of the Friday candlestick, then it’s possible that we could go down to the $23 level, which is basically where the 200-Day EMA is hanging around at the moment and looks as if it is trying to go back and forth and offer a bit of a floor in the market. If we were to break down through the 200-Day EMA, then it’s possible that silver really could start to unwind at that point.

On a break down below that moving average the first target would be the 61.8% Fibonacci level in the $22.30 area, followed by a move down to the crucial and psychologically important $20 level. While I don’t necessarily see that happening anytime soon, if we do see a sudden rush into the US dollar, that could cause that type of selloff. Remember, silver is much more volatile than gold under most circumstances, and therefore if precious metals in general start falling, I’m much quicker to short this market that I am gold.

On the other hand, if we do take off to the upside, it could be very strong and very rapid momentum that gets us to the $25 level. I suspect that the next couple of days will give us some answers, but right now it looks like we may have exhausted some of the bullish momentum that we had seen on both Wednesday and Thursday this week.

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