Silver Price Forecast – Silver Markets Continue to Dance Around 200 Day EMA
Silver markets have pulled back just a bit during the course of the trading session on Friday, as we continue to test the 200 day EMA and of course the uptrend line of the ascending triangle. Ultimately, this is a market that I think continues to see a lot of pressure in both directions, due to the fact that the reopening trade in theory will demand more silver as it is so highly prized. On the other hand, there are a lot of questions about the reopening trade so that might be part of what we are seeing play out here.
SILVER Video 26.07.21
Keep in mind that the US dollar also has its say when it comes to this market, and if it continues to strengthen like it did earlier in the week, that also could weigh upon silver. Breaking down below the most recent low could open up a move below the $25 level. At that point, I think silver would be in serious trouble and we could go down to the $20 level. On the other hand, if we were to turn around and take out the highs of the trading session, we will go looking towards the 50 day EMA above which is currently sitting at the $26.32 level.
After that, then we will try to take out the $27 level which of course is a round figure that has offered a lot of resistance. One thing I think you can say about this market as that will almost certainly be very choppy and sideways in general until we get clarity on the global economy that continues to look positive, but there are multiple closures and concerns about variance of the coronavirus.
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