Silver Price Forecast -Silver Markets Bounce From 50 Day EMASilver markets initially plunged during the trading session on Friday as the US dollar strengthened. However, we have seen the 50 day EMA turn things around.
Silver markets have plunged below the 50 day EMA during the trading session on Friday to show signs of weakness, but we have turned around to continue the overall push to the upside from the recent bounce. When you look at the candlestick, it does make a little bit of a hammer, but given enough time I think what we are struggling with is the $26 level. If we can break above, there then it is likely that silver will continue much higher. Keep in mind that silver is highly sensitive to the value of the US dollar, and the overall idea of stimulus. Stimulus is a main driver of expectations when it comes to interest rates, which by default will drive down the value of currency over the longer term.
SILVER Video 25.01.21
Another thing stimulus will do is drive up the demand use for industrial silver, which will also more than likely drive up the price. That being said, if we can break above the $26 level it opens up a move towards the $27.50 level, and then eventually the $28 level. Alternately, if we were to break down below the candlestick for the trading session on Friday, then we probably go looking towards the $24 level again, an area that has been important recently. I do not have any interest in selling silver, but I do recognize that you need to pick your spots due to the fact that silver contracts can be quite volatile and cause massive problems for people’s accounts if they are not careful. In general, this is a market that I think eventually goes higher but we probably have a lot of wood to chop in the meantime.
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