Silver Price Forecast Video for 08.12.23
Silver Markets Technical Analysis
Silver has been choppy on Thursday as we are trying to sort out whether or not we can continue to go higher, or if the rally is over. The recent selloff has been quite brutal, and it is most certainly overdone. If we can get a daily close above $24, then I think we have a shot at a recovery toward the $25.50 level over a significant amount of time. If we break down below the bottom of the candlestick for the trading session on Thursday it opens up the possibility of a move to the 50-Day EMA.
All things being equal, this is a situation where you have a lot of noisy behavior, and of course silver is a market that is very noisy under the best of circumstances, and right now we are not in the best of circumstances. The oversold condition of silver is certainly something to behold, because we have seen so much in the way of volatility in the precious metals markets, but as interest rates continue to fall in the United States, that should help silver overall, therefore I think you’ve got a real shot at some type of significant rally in this market. Furthermore, there will be people out there looking to pick up “cheap silver” after they may have missed this massive rally that got us up to this area to begin with. Because of this, I think you have to look at this through the prism of a potential buying opportunity but you need to see momentum shoot back to the upside in order to take advantage of it.
If we were to turn around break down below the 50-Day EMA, that would obviously be a very negative turn of events, and therefore open up a drop down to potentially the 200-Day EMA. The 200-Day EMA will obviously attract a lot of attention as it is considered to be a longer-term technical support level, and of course to determine the overall trend. It will fire off a lot of algorithms, and cause chaos in the markets. That being said, we are a long way from there right now, so I still like the idea of finding enough value to start buying again.
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This article was originally posted on FX Empire
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