Silver Price Forecast – Silver Slams Into Resistance

Silver Price Forecast Video for 16.10.23

Silver Markets Technical Analysis

Silver has rallied rather strongly during the trading session on Friday, as we have reached a previous support level. This should allow the market to find a bit of resistance, so we’ll have to wait and see whether or not it pulls back. If it does, that could be a sign that we have completely ran the course of the recovery, and could start to fall at this point. If that is in fact going to be the case, the $22 level would be targeted rather quickly in my estimation. That being said, you should also keep in mind that silver is an extraordinarily volatile instrument, so you need to be very cautious with your position sizing.

When you look at this chart, you can see clearly that the area that the market approached early in the United States trading session is an area that previously had been massive support. It should now have a certain amount of “market memory” attached to it, therefore I think it’s quite interesting to see what it does next. If it does in fact start to fall from here, then it’s likely that we continue the overall downtrend.

On the other hand, if we were to break above the $22.60 level in the futures market, that opens up the possibility of silver recovering completely. There are a couple of moving averages above there, including the 50-Day EMA, and the 200-Day EMA indicators. These of course are important, and a lot of people will pay close attention to them as potential resistance. That being said, anything above there opens up the possibility of the market going much, much higher, perhaps reaching the $25 level in time.

I do think that the one thing you can count on is a lot of volatility, and therefore you need to be cautious with their position sizing and only add to positions that are working out in your favor instead of trying to “front run the move.” Silver typically moves in the opposite direction of interest rates and the US dollar, but those correlations do break down from time to time. Ultimately, this is a very strong candlestick, but one has to wonder whether or not there is enough momentum to keep it going?

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