Silver Price Forecast – Silver Markets Hang at 50 Day EMASilver markets have initially dipped on Tuesday to reach down towards the $26 level before bouncing and showing signs of strength again.
Silver markets have initially pulled back during the trading session on Tuesday to drop back towards the $26 level. However, we found buyers underneath to turn things around and form a bit of a hammer. That hammer of course is a bullish sign, as we are seeing the 50 day EMA also attract a certain amount of buying. With that being the case, if we can break above the highs from the trading session on Tuesday, the market is likely to go looking out towards the $28 level initially, and if we can break above there then it is likely that we could go towards the $30 level.
SILVER Video 03.03.21
If we do break above the $30 level, that opens up the possibility of moving all the way to the $50 level over the longer term. We have seen this happen a couple of times in the past, and quite frankly I think it would be more likely than not if we continue to see some type of “reopening trade” play out again. After all, silver is a massively industrial metal, and that means that people will be paying close attention to demand as unlike gold, higher interest rates will not necessarily work against the value of silver. In general, I like buying dips in the silver market extending all the way down to the $24 level underneath. I do believe that eventually we will go looking much higher, but in the short term it will continue to be very noisy in general. I have no interest in selling silver regardless of what happens next, so if we do drop, I think it is only a matter of time before we get a buying opportunity.
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