Silver Price Forecast Video for 06.04.23
Silver Markets Technical Analysis
Silver has gone back and forth during trading on Wednesday, as we have reached the crucial $25 level. This is an area that has been important multiple times, and therefore it’s not surprising to see a certain amount of resistance in this area, not only from a structural standpoint, but the fact that the $25 level also has a certain amount of psychology attached to it. With that being said, I think it does make a certain amount of sense that we pull back a bit from here, perhaps looking for some type of support near the $24.60 level, where we had seen resistance previously.
The $24 level is the next support level underneath there, which is where we launched from during the previous session. Anything below that level would be a bit disconcerting for the bulls, but it seems very unlikely. That being said, the market is going to continue to see the a lot of noisy behavior, mainly due to the fact that economic numbers in the United States continue to come out weaker than anticipated. If we are in fact going to see the possibility of loosening monetary policy sooner rather than later, that obviously could help precious metals. However, silver has an industrial component to it that will almost certainly be hit if we get into some type of recession.
Market participants will more likely than not continue to follow thegold market as it does tend to lead silver and sometimes vice versa. The market will more likely than not continue to be very noisy, so position sizing will be crucial as per usual, as silver tends to be very noisy to say the least. Because of this, it’s very likely that we will continue to see a need to be very cautious, but I do think that it’s obvious that thesilver marketis very bullish. Because of this, I have no interest in shorting this market, at least not anytime soon. However, if we do see a huge rush toward safety in the form of bonds, that may change this market. Right now, we are nowhere near that though, so it does make a certain amount of sense to look at pullbacks as buying opportunities.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
