Superior broker technology provider since 2010
+1 (315) 675 1086 |

Silver Forecast: Races into Overhead Resistance


Nonetheless, it’s obvious that we have rallied quite drastically as of late, perhaps focusing on the idea of wealth preservation, and of course led by gold. 

  • Silver experienced a slight rally during Friday’s trading session amidst its ongoing volatile behavior. The market has been bullish for some time now, making it understandable to witness a bit of hesitation as it reaches overbought territory.
  • Presently, the market is testing the significant selloff that occurred a couple of weeks ago, indicating the possibility of profit-taking.
  • Alternatively, if the market continues to move higher, it could reach the $24.65 level where it previously peaked.

Analyzing the chart, it is evident that the silver market had rallied substantially from the 61.8% Fibonacci level, implying that momentum might dwindle eventually. If a pullback occurs, the market may look toward the 50-Day EMA located just above the $22.10 area. This would draw bullish investors back into the market. However, if the market breaks below the 200-Day EMA situated below the $22 level, a substantial market correction could occur.

Notably, interest rates in the US dollar significantly impact silver prices. Unlike gold, silver must consider the likelihood of significant industrial demand, which could affect its value in the overall market itself. As we are trying to figure out where the global economy is going, silver will obviously continue to be an area of investment that people are going to be quite skittish about. Nonetheless, it’s obvious that we have rallied quite drastically as of late, perhaps focusing on the idea of wealth preservation, and of course led by gold. If you are trying to protect your wealth, gold will end up being a better alternative most of the time in that overall investment scenario.

The market is currently exhibiting a lot of choppy and noisy behavior, indicating a likelihood of danger. It is advisable to keep position sizes reasonable and take caution to protect your account. After all, the silver market is savagely volatile under the best of conditions, therefore it’s probably worth noting that an even smaller position is probably required at this point.

Ultimately, while silver has experienced some rallies, its volatile nature and potential profit-taking require caution. The market’s bullish trend makes it possible to reach higher levels, but the possibility of market correction remains high. It is crucial to monitor the impact of interest rates and industrial demand on silver prices and protect your account by keeping reasonable position sizes.


Ready to trade our Forex daily analysis and predictions? Here are the best Forex brokers to choose from.


Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.