Silver Price Forecast – Silver Continues to See Negative Pressure

NEW YORK (September 27) Silver fell again during the trading session on Wednesday, as we are testing the $23 level. The $23 level is a large, round, psychologically significant figure that a lot of people will be paying close attention to, and therefore it would not be a big surprise to see a little bit of a bounce, but the real support is closer to the $22.50 level. The $22.50 level is an area where we have seen a lot of noise in the past, and if we were to break down below there, it would attract a lot of attention.

The 200-Day EMA is near the $23.50 region, and we also have the 50-Day EMA and the 20-Day EMA indicators in that same general vicinity. Ultimately, silver is going to continue to react to the bond markets, and the fact that rates continue to skyrocket in America. As long as that is going to continue to be an issue, the reality is that silver is going to struggle. Furthermore, you also have to look at the reality that the market is going to continue to be very noisy and volatile, so you need to be cautious with your position sizing, but that’s probably sage advice most days when it comes to silver as it tends to be such a wild market.

Ultimately, I think we are going to continue to see a lot of noisy and back-and-forth behavior, but the level I’m paying the most attention to is a $22.50 level, because if we were to break down below there, it opens up the possibility of an attempt on the $22 level, perhaps even down to the $20 level. That obviously would probably accompany a major move higher in the US dollar, something that I do think could be ready to happen. On the other hand, if the market were to turn around and show signs of life here, it would probably be a sign that the US dollar is struggling overall. I think this is literally day-to-day noise, and therefore you need to be small in your position and recognize that we are still very much in a consolidation phase.

FXEmpire