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Silver Price Forecast – Silver Continues to Look For Support Just Below

By:
Christopher Lewis

Silver markets have shown support underneath. The $21 level also offers support, so therefore I think it’s probably only a matter of time before buyers jump in and push this market toward the top of the overall range.

Silver coins, FX Empire

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Silver Price Forecast Video for 12-02-2024

Silver Markets Technical Analysis

Silver has rallied initially during the trading session on Friday, but gave back some of the gains. It looks to me like we are in a situation where the market, although trying to form some type of bottom, perhaps is going to be very choppy on the way up. And I think that does make a certain amount of sense because there are a lot of questions out there in order to determine if we’re going to go to the 50 day EMA or even continue to rally significantly. That of course is something that you need to pay close attention to the momentum, because silver is an extraordinarily momentum driven market sometimes.

If we can break above the 50 day EMA and the 200 day EMA, there is a chance that the market could go looking to the $24.50 level, maybe even the $26 level after that. All things being equal, this is a market that I think is going to continue to pay close attention to $22 underneath as a major support level. In general, this is a market that the market participants will be watching a couple of different things, not the least of which is going to be the interest rate situation in America.

If the 10-year yield starts to drop, that does make precious metals a bit more attractive. However, you should also keep in mind that silver is also an industrial metal, so there is a certain amount of industrial questions asked as well. If the demand for silver picks up on the industrial side, that can make it slightly different than gold, which is less industrial and more just a pure precious metal trade. Either way, it looks like the $22 level will continue to be a significant support level underneath, but even if it were to fail, there is plenty of support all the way down to the $21 level and therefore I think it is more or less going to be a bit of a “range of support.”

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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