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

Silver markets got hammered after initially looking strong during the trading session on Wednesday. The 50 day EMA offered resistance, and as the US dollar strengthen, that broke down the silver market. Furthermore, we have seen a lot of noisy behavior in the commodity markets overall, as the greenback has its influence on them. The 200 day EMA has offered a bit of an anchor for price yet again, as we are looking to settle in that general vicinity.

SILVER Video 05.08.21

Looking at this chart, you can see that there is a lot of support underneath, especially in the form of the uptrend line of the ascending triangle, and if that were going to be tested, a break down below that level could open up a major move lower, perhaps opening up the possibility of a move towards the $20 level. That obviously would be a huge move, and therefore I think it would be a nice continuation of the massive pullback we have seen. On the other hand, if we were to break above the top of a shooting star, which opens up the possibility of testing the $27 level, which is an area of significant resistance.

If we break above there, then the market is likely to go looking towards the $28 level. That is an area that has also been important, and I think more than anything else you can take away from this analysis is that we continue to go back and forth and struggle for some type of clarity overall. With that being the case, we will be very choppy between now and the jobs figure.

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