Silver Price Forecast – Silver Markets Break 50 Day EMA

Silver markets have rallied during the trading session on Thursday to break above the 50 day EMA. Ultimately, this is a market that looks as if it has been trying to form some type of base, as we have bounced significantly from the 200 day EMA, and then of course the $25 level. If we can break above the recent highs from a couple of months ago, then the market is likely to go much higher. At this point on, the market is likely to see pullbacks as buying opportunities and therefore it looks as if silver is ready to turn around and go higher, perhaps reaching towards the $28 level.

SILVER Video 16.04.21

To the downside, if we were to break down below the $24 level, something that is not going to happen in the short term, then the market is likely to break down towards the $22 level. The $22 level is the bottom of the overall uptrend and breaking down below that could send this market much lower, perhaps opening up a massive selling opportunity. That being said, the “reopening trade” suggests that there will be a lot of industrial demand going forward, and that of course is a major driver of where silver goes. All things been equal, this is a market that I think is trying to make a move, but it is obvious that we will continue to see noisy behavior. Longer-term, I am bullish on silver, but I also recognize that you need to be very cautious about your position size as silver tends to be extraordinarily volatile. With that in mind, scale into a position only when it works out.

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