Silver Price Forecast – Silver Hanging at 50 Day EMASilver markets have gone back and forth on Tuesday as we continue to see the market trying to overcome the recent selling pressure.
Silver markets initially gapped a little bit lower to kick off the trading session on Tuesday but then turned around to show signs of strength again. The market has reached towards the $26 level, which is an area that had previously been resistance. Nonetheless, I think it is only a matter of time before buyers come back in and take advantage of “cheap silver”, as it has found the 50 day EMA to be interesting more than once. Furthermore, we had formed a bit of a hammer from the previous session, so that was the first sign that we could see a bit of support coming into the market to reach towards the upside again.
SILVER Video 13.01.21
The 50 day EMA is not necessarily the “be-all and end-all”, but it certainly does tend to attract a certain amount of attention. The $24 level underneath is likely to be supported, as it has shown itself to be more than once in the past. Nonetheless, the fact that we have broken above the $26 level before suggests that we very well could again, perhaps reaching towards the $28 level. I do not think that it is a market that will eventually go much higher than that, due to the fact that the US dollar will continue to be eviscerated.
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The 200 day EMA underneath is sitting at the $22.77 level, and that could of course attract a certain amount of support as well. Regardless, I think that the market is one that you cannot be a seller of, so I think every time we dip you should be looking at potentially adding just a bit of silver to a longer-term position.
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