Silver Weekly Price Forecast – Silver Forms a Hammer for the Week

Silver Price Forecast Video for 06.03.23

Silver Weekly Technical Analysis

Silver markets have fallen a bit during the course of the week, only to turn around and show signs of life. By forming the hammer at a psychologically important level, mainly the $21 level, and of course the 50% Fibonacci level, it does make a certain amount of sense the buyers will probably come back into the picture. If we can break above the top of the candlestick, I anticipate that silver will probably go looking toward the $22 level for a potential target. The 200-Week EMA sits near the $21.50 level, so I would anticipate that we would see a lot of noise in that area. Nonetheless, this has been a very nice pullback and I do think that you have the opportunity for this market to start rallying again.

If we break down below the bottom of the candlestick, then it opens up a move down to the $20 level. The $20 level underneath is a large, round, psychologically significant figure, and therefore it should also offer support. Anything below there would send silver much lower.

Ultimately, this is a market that continues to be very volatile, but at this point it’s a situation where you will continue to have to be cautious with your position sizing, due to the situation that we not only have with interest rates that can work for and against silver, but also the fact that the industrial demand could crumble if we are going to see tight financial conditions and an economic slowdown. Because of this, I think you need to be very cautious, but it does look like traders may be getting ready to step back into the silver market.

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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