Silver Price Forecast – Silver Markets Get Hammered

Silver markets broke down significantly during the trading session on Wednesday, slicing through the $24 level. Ultimately, the market looks as if it is ready to go much lower, perhaps reaching towards the $22 level underneath, perhaps even the 200 day EMA after that. Ultimately, this is a market that is still in an uptrend given enough time, and ultimately if you can get some type of supportive candlestick, it gives you an opportunity to pick up silver “on the cheap.”

SILVER Video 29.10.20

Just below the 200 day EMA we have the 50% Fibonacci retracement level, which could offer a bit of support, followed by the $20 level. Looking at this chart, the possibility of a pullback to any others levels makes quite a bit of sense, especially as the US dollar is starting to strengthen. If that is going to be the case, then the market is likely to continue to drift lower until we find real demand. I do think that eventually the longer-term trend takes over again, and quite frankly it is very likely that we are going to continue to see buyers looking for opportunities to go long as central banks around the world continue to see the need to flood the markets with liquidity. If that is going to be the case, then precious metals and other hard assets should do fairly well. At this point, I recognize we could drop from here, but I do not have any serious desire to short the market.

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