Silver Markets Bounce From 50 Day EMA

Silver Markets Technical Analysis

Silver markets have fallen during the trading session on Friday as the jobs number came out roughly as anticipated. At the end of the selling, we had pierced the 50 Day EMA, but have also turned around to show signs of support. Because of this, and the fact that it looks like we are forming a hammer, it is very likely that the silver market will continue to find buyers on dips in the short term. The $25.50 level above has been like a magnet for the price, so therefore it should not be a huge surprise to see this market reaching that area.

If we were to turn around a break down below the massive hammer from the Tuesday session, that could open up a waiver fresh selling, perhaps sending the silver markets down to the $23 level, maybe even the $22 level over the longer term. This would obviously be a very negative turn of events and could send this market into a tailspin. That being said, the market is going to continue to be noisy, which quite frankly is more often the case than not when it comes to trading silver.

Because of this, you need to be cautious with your position size, but if you choose to trade shorter-term charts, silver can be quite lucrative. At this point, I still believe that we have more buyers and sellers willing to put money to work, so a short-term rally makes quite a bit of sense. In these volatile times, you are better off trading with smaller than usual positions as the damage to your account can be great.

Silver Price Forecast Video 04.04.22

For a look at all of today’s economic events, check out our economic calendar.