Silver Price Forecast – Silver Finds Support near the 200-Day EMA

May 25, 2023

NEW YORK (May 25) Silver has fallen a bit during the trading session on Thursday, to reach down toward the 200-Day EMA. The 200-Day EMA of course is an indicator that a lot of people pay close attention to, and the fact that we are sitting right around the 50% Fibonacci retracement level, which of course will attract a certain amount of attention in general, is also important. However, if we were to break down below the 200-Day EMA, you can also make an argument that the 61.8% Fibonacci level might come into the picture as well.

That means that, if we were to break down below the 61.8% Fibonacci level, that typically means that the trend falls apart, and the fact that the 200-Day EMA sits right around there only reinforces that same scenario. If that were to happen, I think silver will drop all the way down to the $20 level. On the other hand, you can make an argument that we’ve had a nice pullback after a huge shot higher, and therefore we could see you value hunters coming back into the picture.

All things being equal, you should keep in mind that silver is extraordinarily volatile, and that of course is a major issue when trading it. You need to see a lot of upward momentum from this point to turn things around, but if we do get that, it’s very likely that silver will really start to take off. This will be confirmed if we can break above the 50-Day EMA, but we will have to wait and see how that plays out.

While silver can be used for the same wealth preservation that other precious metals can be, you should also keep in mind that silver is obviously an industrial metal as well, and there are a lot of concerns out there right now as to whether or not the global economy is going to continue to show signs of strength, or if demand for silver will fall through the floor as we head into a recession. Because of this, expect a lot of volatility.

FXEmpire

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