Silver Price Forecast – Silver Has Fallen Rather Hard During the Trading Session

Silver Price Forecast Video for 12.05.23

Silver Markets Technical Analysis

Silver has fallen rather hard during the trading session on Thursday to reach to the $25 level, which of course is a large, round, psychologically significant figure. With that being the case, it does make a certain amount of sense that we would see buyers enter this market, but I think even if the market price down below the $25 level, it’s possible that we could go down to the 50-Day EMA indicator near the $24.50 level. Regardless, I think there is plenty of support underneath and it is probably only a matter of time before the buyers turn around and pick up momentum.

On the upside, the $26.50 level above has been resistance, and it could be the top of a consolidation range that we are trying to form. I also have a bullish pennant on the chart, which we are still respecting, at least at the moment. If we turn around and take off, the measured move would be all the way to the $31 level, but that is “putting the cart before the horse.”

Silver has been very bullish for some time, and therefore it’s not a huge surprise if we see buyers come back into the market in this general vicinity. Whether or not it takes off and breaks out of the range that it’s in right now remains to be seen, but it’s obviously still a bullish market, despite the fact that the candlestick on Thursday was so poor.

The US Dollar Index does have a negative correlation to silver a lot of the time, so you probably want to pay attention to that as well. Nonetheless, I think it’s probably only a matter of time before we will see the US dollar have its say about what happens next. All things being equal, this is a situation where we will continue to see a lot of volatility, so keep your position size reasonable. That being said, it’s typical for silver to be very noisy, and therefore it should be more or less the same conditions that you are used to.

It is not until we break down below the $23.50 level that I am comfortable selling, and we are quite some distance from there, so I still look at this as a “buy on the dip” type of market.

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