Silver Price Forecast – Silver Markets Pull Back

Silver markets have broken down a bit during the trading session on Wednesday as we continue to see a lot of volatility around the world. Looking at the chart, you can see that the 50 day EMA has been important more than once and it seems as if it is causing a lot of technical disruption at the same time. The US dollar of course has been negatively correlated to the silver markets for some time, so therefore it is worth paying attention to what is going on in the US Dollar Index. That being said, I think that if we do get an opportunity to pick up “cheap silver”, we should. I like buying dips and I do think that eventually we take off to the upside due to the central banks around the world likely to be flooding the markets going forward.

SILVER Video 10.12.20

The $22 level underneath should be a significant level of support, as it has been important more than once in the past. Ultimately, I think this is a market that will continue to be a “buy on the dips” scenario especially with the 200 day EMA near the aforementioned $22 handle. To the upside, the $26 level is significant resistance, and if we can break above there it is likely that we go much higher. With that being the case, I would become a little bit more aggressive as we should then go racing towards the $20 level, followed by the $30 level. All things being equal, I think that we do go higher over the longer term so therefore I do not have any interest in shorting.

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