Silver Price Forecast – Silver Markets Continue to Sit Above Support

Silver markets have done very little during the trading session on Wednesday, as we continue to see a lot of support just below. That being said, the market likely will continue to see the $22.75 level as a barrier for sellers, as it not only has offered support previously, but we have seen that the 38.2% Fibonacci retracement level park itself there as well. Breaking down below that does not necessarily mean that we fall apart, because we have the 200 day EMA underneath there. After all, the 200 day EMA is an indicator that a lot of people will follow longer term.

SILVER Video 26.11.20

Looking at the chart, I believe that there is plenty of support underneath that eventually traders will act upon. Having said that, we clearly are slumping as people are starting to worry about whether or not precious metals are needed for “safety.” This is mainly due to the fact that the vaccine has turbocharged the idea of global growth, and therefore more people are willing to take risk. The 50 day EMA sits at the $24.38 level, so it is likely that we are going to see a little bit of short-term resistance on any type of bounce towards that area. The candlestick from the selloff on Tuesday was a bit encouraging because of the bounce, but as we head towards the Thanksgiving Day holiday, there will be a serious lack of volume on Thursday.

There will be some electronic trading early in the day and of course as the day rolls over, but overall volume will be depressed so I would not anticipate too much coming out of the Globex markets for the next 24 hours.

For a look at all of today’s economic events, check out our economic calendar.