Silver Price Forecast – Silver Markets Pull Back to 50 Day EMA

Silver markets have pulled back a bit during the course of the trading session on Friday to test the 50 day EMA. The 50 day EMA of course is a significant technical indicator that a lot of people pay attention to, so it does make a certain amount of sense that we would see a little bit of a bounce. Whether or not we can sustain this probably has more to do with the US dollar than anything else, as it has such a huge negative correlation. At this point, the market is likely to see quite a bit of noise, and if we were to break down below the 50 day EMA is possible that the market could go looking towards the $23 level.

SILVER Video 01.11.21

To the upside, the 200 day EMA is sitting at the $24.55 level. At this point, that is a significant amount of resistance just waiting to happen. At this point, the market would then go looking towards the $25 level. Breaking above the $25 level allows the market to go much higher, perhaps reaching towards the $26 level.

If we were to go lower from here, there is a significant amount of support just waiting to jump in the markets, as the silver market is highly correlated to the reopening trade, which of course is a big deal. Silver is a major industrial metal, and of course has a lot to do with the “green deal” that so many governments around the world are trying to get involved in. This being the case, I think that we have more volatility ahead more than anything else.

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