Silver Price Forecast Video for 17.10.23
Silver Markets Technical Analysis
Silver pulled back slightly during the trading session on Monday, as the 50-Day EMA has come into the picture. Ultimately, the market looks as if it is trying to get down toward the $22.50 level again in order to see whether or not it holds as support. I believe that the next couple of days will be crucial for thesilver market and probably the markets in general. This has been one massive move on Friday, so one would assume that there’s probably some type of follow-through coming. Because of this, I am a bit cautious, but I also recognize that there are a couple of technical indicators just above that could come into the picture as well.
The 200-Day EMA sits above the $23 level, so we can see that it opens up the possibility of a move to the $24 level. The $24 level is an area that recently has seen a lot of selling pressure as well. In other words, there’s a lot of noise that the market needs to get beyond, and therefore I think we have to look at this through the prism of whether or not we can build up the necessary momentum.
Pay close attention to the US dollar, because thesilver marketis highly sensitive to the greenback, and of course interest rates. Furthermore, thesilver marketis also sensitive to the idea of industrial demand, so we also have to look at the world through the prism of whether or not there is going to be demand for base metals.
Under the best of circumstances, silver is very noisy. These aren’t the best of circumstances, so it’s going to be even worse. If we can break above the 200-Day EMA, then the market could challenge that $24 level. On the other hand, if we break down below the $22 level, then it opens up a new flood of selling pressure. I suspect that in the next couple of trading sessions, we will probably see a lot of noisy and choppy consolidation. Because of this, position sizing will be crucial for your survival when it comes to this type of volatility.
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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.
