Silver Price Forecast – Silver Markets Give Up Early Gains
Silver markets have rallied significantly during the course of the trading session on Friday but gave back gains as we approached the $25 level. The silver market got absently slammed, as $25 continues to be a major problem for traders to deal with. Breaking down below the bottom of the candlestick for Friday could open up a fresh shot lower, but there is still significant support levels underneath that could come into play. The most obvious one for me of course is the 50 day EMA which is curling higher at the $23.56 level.
SILVER Video 25.10.21
Alternately, if we turn around a break above the $25 level, then it is likely that the market goes looking towards the $26 level, perhaps even higher than that. Looking at this chart, we have clearly made a huge fractal to the upside, but if we turn around and break down from here, that could be a failed move to the upside. The market continues to be very noisy, especially as the US dollar has such a huge negative correlation to this market, and therefore you should pay close attention to the US Dollar Index.
The one thing that will truly help silver at the moment is the fact that there is a huge amount of industrial demand coming out, and that obviously will have a major influence on where price goes. Nonetheless, we are a little bit overextended so at the very least I would not be surprised to see a bit of a pullback in order to go looking towards value underneath. Position sizing will be crucial for this very volatile market.
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