Silver Price Forecast – Silver Markets Hovering Over 200 Day EMASilver has fallen a bit on Monday. We are currently sitting just above the 200 day EMA, so that is worth paying attention to.
Silver markets have fallen a bit during the trading session on Monday to reach down towards the 200 day EMA and sliced through the $25 level. As I record this video, we are testing the bottom of a hammer from the Thursday session, which should show a certain amount of support. The 200 day EMA sits just below there, so if we were to break down below that level then I think silver probably continues to grind towards the $22 level over the longer term. The $22 level being broken to the downside would be a complete trend change and a disaster for silver.
SILVER Video 30.03.21
It is interesting, because the silver market continues to see a lot of noise as the US dollar strengthens and falls, and of course people are starting to look at the idea of the reopening trade, and the possibility that there will be significant demand for silver going forward on an industrial basis. That being said, this chart looks very sick, and I think at this point we need to see what happens next, because simply buying down here might be a bit rough. The market continues to see a lot of noise in general, not just in the silver market. Remember that silver is much more volatile than gold though, so you need to be cautious about your position size.
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On a break above the $25.25 level, then the market could very well go to the 50 day EMA which sits just above the $26 level. If we can break above the $26 level, then the market is likely to go looking towards the $28 level. That being said, as sick as this chart looks, I am becoming less confident that there will be an up buyers to push higher.
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