Silver Price Forecast – Silver Markets Break Down Toward SupportSilver markets initially tried to rally during the trading session on Thursday but gave back the gains to reach towards the recent lows at $17.85 before stabilizing a bit.
Silver markets have been rocked over the last couple of days, as we had tried to break above the previous uptrend line but then were repelled as the Iranians and the Americans stepped back from the precipice of a potential shooting war. The 50 day EMA sits underneath and will more than likely offer plenty of support. That being said, it’s likely that the market is starting to stabilize because we have the jobs figure coming out on Friday, which of course will have a massive influence on the US dollar itself, and therefore a bit of a reaction on this market.
SILVER Video 10.01.20
The 50 day EMA should offer plenty of support, as the $17.50 level is just above it, and it should offer plenty of support. A bounce from that area should be thought of as a buying opportunity as it is based upon value more than anything else. I have no interest in trying to short this market, but I do recognize that a short-term pullback may continue to offer value.
If we were to break down below the 50 day EMA, then it’s likely that we could go down to the $17.00 level, which of course is a large, round, psychologically significant figure. All things being equal, the silver market looks as if it needs to pull back a bit in order to find a bit of buying pressure underneath as the market had recently broken higher but may have gotten a bit ahead of itself in the short term. All things being equal, the central banks around the world continue to liquefy markets, so it’s likely that precious metals will continue to gain over the longer term.
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