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Silver Price Forecast – Silver Markets Continue to Threaten Same Region

By:
Christopher Lewis
Published: May 28, 2021, 16:24 UTC

The silver market has fallen a bit during the course of the trading session on Friday but found support again at the $27.50 level.

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Silver markets have formed a bit of a hammer during the trading session on Friday as we continue to see buyers underneath to push the market into the $28 level and try to break out to the upside. At this point, I believe that the market will continue to try to break out to the upside and reach towards the $30 level, but obviously we have a lot of noise in this area. What I find interesting about the $30 level is that historically it means that we are going to go looking towards the $50 level.

SILVER Video 31.05.21

All things been equal, this is a market that continues to find buyers on dips regardless, and I do believe that the 50 day EMA underneath will come into the picture. That of course is an indicator that is worth paying attention to, and as long as we can stay above there it is likely that we see buyers jumping into the fray. Even if we break down below there, I think that the $26 level and the 200 day EMA both come into the picture, so I have no interest in shorting this market as there are plenty of buyers underneath. In fact, it is not until we break down below the uptrend line that I would consider shorting this market, and even then, I would be a bit hesitant. I would have to look at the overall picture if and when we got there. I still believe that buying the dips continues to work, not only due to the technical analysis, but also the industrial demand for silver as the markets price in the reopening trade.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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