Silver Price Forecast – Silver Markets Continue to Try and Build BaseThe silver markets have dipped a bit during the trading session on Friday, showing signs of support underneath though.
Silver markets have fallen a bit during the trading session on Friday, reaching down towards the $22.50 level before finding a bit of support. Ultimately, the market is likely to see a big fight here, and silver of course is in a bullish trend. Looking at the candlestick from the Thursday session, it is a nice-looking hammer, and a break above the top of the hammer does suggest that perhaps the market is ready to go higher. To the downside, the $22 level offers support and if we were to break down below there, then it is likely that the market could go down towards the 200 day EMA.
SILVER Video 28.09.20
The 50 day EMA above at the $25 level could cause a bit of resistance, as it is not only a technical signal that people will pay attention to, it is also a large, round, psychologically significant figure to boot. I think that this all comes down to the US dollar, and whether or not it is strengthening. The US dollar has shown itself to be rather resilient and strong over the last week or so, and that has punished silver, and to a lesser extent gold. That being the case, commodities all have taken a significant hit and the question is whether or not the US dollar can strengthen?
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The biggest problem that we have here is that there are a lot of moving pieces, but it certainly looks as if the to cause a significant amount of issues, and of course should have you keep your position size relatively small. A bounce from here is likely, but I do not know that it is the long term “buy-and-hold” type. If we can break above the 50 day EMA then I would be much more convinced.
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