Silver Price Forecast – Silver Markets Continue Noisy BehaviorSilver initially gapped higher to kick off the session on Tuesday, but gave back the gains almost immediately. The market crashed into the 50 day EMA again.
Silver markets have gapped higher to kick off the trading session on Tuesday, but then broke down from there to crash into the 50 day EMA. Ultimately, this is a market that has plenty of support underneath, and at this point in time it is likely that we will continue to see buyers underneath near the $24 level, possibly even down at the $22.75 level. That is an area that has been supportive in the past, and therefore think it is only a matter of time before buyers would show up in that area. Beyond that, we also have the 200 day EMA near the $21.70 level. With all of this being said, the market is likely to find plenty of buyers underneath to get involved.
SILVER Video 18.11.20
Ultimately, this is a market that I think eventually finds reasons to go higher, if for no other reason than the fact that central banks out there will continue to flood the markets with liquidity. With this, I believe that people will continue to see reasons to go long regardless of anything else is going on. Having said that, silver also has an industrial component built into it, so you need to keep that in mind as well, because if the economy slows down then gold will probably outperform silver yet again. Nonetheless, the two markets do tend to move in the same direction, so I think eventually we go looking towards the $26 level above, and then possibly even breakout above there. All things being equal, this is a market that I think continues offer values on dips and that is how I approach it.
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