Silver Forecast: Market Falls in Value – 08 March 2023
On Tuesday, silver experienced a significant fall in value due to the negative correlation between the US dollar and silver. As the greenback gained strength throughout the day, it was expected that silver would suffer as a result. In addition, the market had recently experienced a lot of selling pressure, leading to a further drop in the price of silver towards the $20 level.
Interestingly, the $20 level is the 61.8% Fibonacci level, a large, round, and psychologically significant figure that the trading community will be paying close attention to. Fibonacci levels are used by many traders as a way to identify potential support or resistance levels in the market. Furthermore, the moving averages are also located near the $22 level, with the 50-Day EMA and the 200-Day EMA attracting attention from traders.
If the 50-Day EMA breaks below the 200-Day EMA, it could trigger a “death cross,”.This is a bearish technical signal that could impact longer-term traders.However, if the market were to turn around and break above the $22 level, silver would likely experience a surge in value, with traders looking to fill the massive gap in trading that occurred just below the $24 level.
The $24 level is an area where a lot of attention is paid due to the significant selling pressure experienced in the past. Above this level, the $25 level is also a psychologically significant figure that has caused selling pressure multiple times in the past. However, if the market were to break above these levels, it could trigger a massive short-covering rally, as seen during the last major financial crisis in 2008.
On the other hand, if the market were to break down below the $20 level, it could open up a move down to the $1900 level. This highlights the importance of monitoring key levels in the market and paying close attention to technical signals that could impact trading decisions.
The recent fall in the value of silver can be attributed to the negative correlation between the US dollar and silver, as well as the selling pressure experienced in the market. Traders will be paying close attention to key levels such as the $20 and $22 levels, as well as the moving averages, to identify potential support or resistance levels. Additionally, the $24 and $25 levels are significant psychological levels that could impact trading decisions. It is important to monitor these levels and technical signals to make informed trading decisions.
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