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Silver Price Forecast – Silver Markets Pull Back From 50 Day EMA

By:
Christopher Lewis
Published: Sep 7, 2021, 15:40 UTC

The silver market has gotten hammered during the trading session on Tuesday as traders came back to work. The 50 day EMA looks as if it has offered a bit of the ceiling.

Silver Price Forecast – Silver Markets Pull Back From 50 Day EMA

In this article:

Silver markets have fallen rather significantly during the trading session on Tuesday to show that the 50 day EMA will of course attract a lot of attention. Quite frankly, silver is very sensitive to the US dollar, which of course did rally quite significantly. That is like kryptonite for silver, so it makes sense that we fell. The $24 level underneath should be significant support but breaking down below that level would certainly capture a lot of attention, making this market break down drastically. At that juncture, I would anticipate at the very least the market would go looking towards the $23 level. After that, the bottom falls out and we just do not know where we end up.

SILVER Video 08.09.21

To the upside, we would have to take out the highs of both Friday and Monday in order to even entertain that idea as the chart sets up. Looking at this chart, I think we are still very much in a downtrend, and you could point out that there is a bit of a downtrend line sitting just above as well, which of course would offer a bit of resistance going forward. We have made a series of “lower highs”, which of course still signifies that we are in a downtrend.

If we were to break above the $26 level sometime in the future, that would be a complete change of trends, and therefore we become more of a “buy-and-hold” market. That obviously would involve a softening US dollar, so pay close attention to the US Dollar Index, as it has a lot of influence in general.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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