Silver Price Forecast – Silver Markets Give Up Early Gains
Silver markets have initially tried to rally during the trading session on Thursday but gave back the gains to show signs of exhaustion. Ultimately, the market looks very likely to continue the overall consolidation, as we are sitting just below the 200 day EMA. After this last couple of weeks, the question is now whether or not we could continue to go higher, or are we simply going to charge back and forth? Looking at this chart, we not only have the 200 day EMA underneath offering support, but we also have the 50 day EMA coming down to offer resistance. I think given enough time, we are probably going to have to make some type of bigger move, based upon impulsivity.
SILVER Video 02.07.21
If we break above the 50 day EMA, then the market is likely to go higher and try to fill the gap that extends to the $27.75 level. Furthermore, if we break above that then it is likely that we will attempt to break above the $28 level. That being said, the market has an extensive amount of resistance extending all the way to the $30 level. If we break that, then silver can go much higher, perhaps reaching towards the $50 level based upon historical behaviors.
On the other hand, if we break down below the 200 day EMA and by extension the $25 level, we could go much lower, perhaps reaching towards the $23 level, and then possibly the $20 level after that. I believe that industrial demand will probably continue to pick this market up as well. If the US dollar start falling, that could also help this market a bit.
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