Silver Price Forecast – Silver Markets Break Above $24 Again

Silver markets have initially pulled back during the trading session on Friday to reach down towards the 50 day EMA, which has flattened out. With that being the case, the market is likely to see a lot of noise in this general vicinity as we are stuck between the 50 day EMA and the 200 day EMA. With this being the case, the market will continue to be very noisy but if we can break that 200 day EMA at the $24.51 level, then I think the market is probably going to challenge the $25 level above. The $25 level above is a large, round, psychologically significant figure, but it would also form a bit of an inverse head and shoulders.

SILVER Video 08.11.21

At this point, it will be interesting to see what happens with the US Dollar Index, because it does tend to have a bit of a negative correlation to this market. If we break down below the 50 day EMA, then it is likely we go looking towards the $23 level, but at this point it looks as if the market is trying to go higher, perhaps boosted by the jobs number being so strong, as it does suggest that industrial demand for silver should pick up. At this point in time, I would hope that you understand that silver is a very volatile contract, and therefore you need to be cautious with your position size. Nonetheless, I am perfectly fine with adding as we go higher. The $22 level underneath has been important audible times on longer-term frames, so it is not a huge surprise to see that we have bounced from there.

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