Silver Price Forecast – Silver Markets Finding SupportThe silver markets pulled back a bit during the trading session on Thursday but seem to be finding a bit of support near the $23 level.
Silver markets initially pulled back a bit during the trading session on Thursday but seem to be finding support near the $23 level. Quite frankly, this is interesting due to the fact that the 38.2% Fibonacci retracement level is in that area, and therefore it will attract a certain amount of attention. Ultimately, this is a market that should continue to see a lot of choppiness overall, and I am still bullish of silver, regardless of the fact that we have seen a lot of negativity. Underneath, I think that the $22 level is support as well, and then the 200 day EMA.
SILVER Video 30.10.20
Ultimately, if we can break above the 50 day EMA, then the market goes looking towards the $26 level. If we can break above there, then the market is likely to go looking towards the $27 level where we have seen a lot of supply in the past. To the downside, even if we break down below here, I think that the absolute “floor” in the market is closer to the $20 level. Ultimately, this is a market that should continue to be bullish over the longer term, as central banks around the world will continue to flood the markets with liquidity. Because of this, I think that this market remains a “buy on the dips” type of situation.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
I have no interest in shorting, because quite frankly with all of the central banks out there looking to flood the markets with currency, it would make quite a bit of sense that the precious metals will get a bit of a bid. However, I am the first to tell you that gold typically acts a little stronger in that scenario.
For a look at all of today’s economic events, check out our economic calendar.