Silver Price Forecast – Silver Markets Bounce From 50 Day EMA

Silver markets have pulled back a bit during the course of the trading session on Monday to reach down towards the 50 day EMA, before turning around and showing signs of strength. At this point, it looks as if silver is ready to continue going higher, but it may take quite a bit of effort to finally break above the $25 level. If and when that happens, silver should skyrocket as it would become more of a longer-term “buy-and-hold” type of market. Keep in mind that silver also has a lot of industrial use, so this is by definition a bit of a “reopening trade”, meaning that we would see a lot of demand pick up for silver via the new green deal.

SILVER Video 02.11.21

If we were to turn around a break down below the 50 day EMA, it could open up selling to reach down towards the $23 level, but at this point in time I do not see that as being a likely outcome. Breaking below the $23 level would be extraordinarily negative turn of events for the market and would probably represent some type of massive surge higher in the US dollar. Speaking of the US dollar, pay attention to it, because it does have a bit of a negative correlation to the silver market.

We are currently stuck between the 50 day and the 200 day EMA indicators, so that in and of itself will have a certain influence on the markets. It represents a bit of a “squeeze”, and it should be noted that although silver has rallied, gold has struggled a bit as of late, perhaps due to the fact that this is more of an industrial play currently.

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