Silver Price Forecast – Silver Markets Break Down Toward Support

Silver 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.
Christopher Lewis
Silver Price Forecast - Silver Markets Break Down Toward Support

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.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.