Advertisement
Advertisement

Silver Price Forecast – Silver Markets Break Down

By:
Christopher Lewis
Published: Mar 6, 2020, 17:58 UTC

The silver markets have formed an outside bearish candlestick during the trading session on Friday, showing a reversal of fortune. However, it is also sitting on the 200 day EMA.

Silver

Silver markets have formed an outside bearish candlestick during the trading session on Friday which of course is a negative sign but ultimately it looks as if the market is going to continue to see support just below at the 200 day EMA. In other words, there are a lot of things going on at the same time from a technical analysis standpoint. Having said that, the market looks to be very likely to see a lot of choppiness and volatility in this area. That being said though, keep in mind that silver has a couple of different influences in both directions.

SILVER Video 09.03.20

The silver markets have a dual-purpose, as the metal is used both as a precious metal in the markets, but also has an industrial component to it. In other words, silver is more than likely going to underperform gold as that industrial component to the market is going to weigh upon price. Ultimately, the market you see in front of you is one that is going to be very choppy and noisy, but I do think that there is a potential “pairs trade” in buying gold in shorting silver, taking advantage of the differential between the two. Overall, the 50 day EMA above could offer significant resistance so if we were to break above there it’s likely that the market could then go to the $18.50 level. To the downside, if the market was to break down below the 200 day EMA, then it’s likely that we could go down to the $16.50 level. Either way, silver underperforms gold going forward.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement