Silver Price Forecast – Silver Markets Pull Back From 50 day EMA
Silver markets have gapped higher to kick off the trading session on Tuesday, as a bit of optimism for a quick result out of the US elections has started to build in the markets. At this point though, there is plenty of resistance above that could cause quite a bit of trouble, and therefore I think we probably get another leg lower. Quite frankly, the risk is more to the downside than up in the short term, but I think longer term we certainly have quite a bit of buying underneath just waiting to happen. The 50 day EMA is touching the top of the daily candlestick, near the $24.50 level. That of course is an area that is going to be crucial to pay attention to.
SILVER Video 04.11.20
The market pulling back from here makes quite a bit of sense, simply because you have to wonder whether or not there is going to be demand, even though Wall Street is looking to bank on the idea of stimulus driving up value when it comes to commodities. I do think that the longer-term play, but in the short term we have a lot of noise out there that probably continues to have this a “buy on the pullbacks” scenario. I like the idea of buying your $22 level, the 200 day EMA underneath and of course the $20 level. With all that being said, the market is likely to offer plenty of value if you are patient enough, but it must be said that we are pulling back from the 50 day EMA rather quickly midday, so that tells me we are not quite ready to take off yet.
For a look at all of today’s economic events, check out our economic calendar.