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Silver Forecast: Silver Continues to Search and Probe Major Support

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

A potential double bottom formation suggests underlying value-seeking interest in silver, but a drop below $22 could lead to further decline, albeit not guaranteed.

  • During Thursday's trading session, silver made an initial attempt to rise and reached the 200-Day EMA.
  • In the end, I think there are still a lot of loud players in this market, but I also think there are a lot of buyers underneath.
  • Looking at the silver market, we have tested the 200-day EMA during the day on Thursday, as you can see.
  • I think a lot of people will be watching the 200-day EMA, and it's clear to me that there has been a lot of selling pressure there.

In fact, I would be happy if we did break down from here because silver is probably going to keep considering the $22 mark as a possible floor in the market. The $23.50 mark is another hurdle that I believe will be challenging to cross on the upside.

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Possible Targets

It is possible that the market will target $24.50 if and when we do. Remember that there will be a lot of questions regarding global central bank monetary policy and that silver will continue to be quite noisy. Naturally, that has a significant impact on precious metals. However, it appears like we are attempting to create a small double bottom underneath at this time. And I believe that the double bottom is a scenario in which there are still a lot of value seekers to be found.

Silver forecast today 23/02 - Silver Continues to Consolidate in Familiar Territory (Chart)

It's quite possible that we could drop below the $21 level if we were to break below the $22 mark, but I wouldn't hold my breath for that. Anticipate significant fluctuations and wavering in price, but a decline would be appreciated. It should present me with an opportunity to purchase inexpensive silver and, naturally, diversify away from the dollar, which is probably going to struggle this year along with many other fiat currencies because of future measures by central banks. In the end, industrial demand must also be taken into consideration, but since everyone is currently fixated on the Federal Reserve, the ECB, etc., I believe that this segment of the market is currently quite modest.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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