SLV

Silver Price Forecast – Silver Rallies on Wednesday to Test The 200-day EMA

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Silver Markets Technical Analysis

In the silver market, we are hanging around the 200-day EMA, which currently is offering a little bit of resistance, but keep in mind that the 200-day EMA is essentially flat. That suggests that we are going sideways more than anything else. The $23.50 level above is a barrier that has held true for close to two months now and has shown action multiple times over the last several years. If we can break above the $23.50 level, then it’s likely that we could go looking to the $24.50 level.

Short-term pullbacks will be buying opportunities, as far as I can tell, with the $22 level underneath being a significant support level that multiple times has proven itself. We have ended up forming a bit of a double bottom in that area. So, I do think it matters. Ultimately, you will have to pay attention to interest rates in the United States, the US dollar itself, and industrial demand, which of course is something that’s a little bit difficult to gauge because silver is used in specific industries. And of course, central bank actions around the world.

At this point, it looks like a lot of the central banks around the world will be easing monetary policy this year. And if that’s the case, precious metals in general should do fairly well. Keep your position size reasonable because silver is a very dangerous market to trade in at times. And therefore, you have to be very cautious about going all in in one shot.

Because of that, I would anticipate that there is more of a buy on the dip field of this market going forward, which quite frankly that’s how it’s been for the last six weeks or so anyway. On a break above the $23.50 level, I do expect to see more momentum being raised and therefore the next dollar from there would probably be a much quicker target for market participants to hit.

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.

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