Silver Price Forecast – Silver Markets Pull Back to 50 Day EMASilver pulled back significantly on Friday to reach down towards the 50 day EMA. This was in reaction to higher yields in America and a strengthening US dollar.
Silver markets have broken down a bit during the trading session on Friday to reach down towards the 50 day EMA. This is an indicator that a lot of traders pay close attention to in this market, and you can see that recently it has been very obvious. That being said, the market is pulling back towards the $26 level, an area that we had bounced from to form the hammer that we are currently testing. If we were to break down below the $26 level, then it is possible that we reach down towards the 200 day EMA which is at roughly $24 currently. This is an area that we have seen buyers at previously, so it all lines up quite nicely.
SILVER Video 01.03.21
The upside features the $28 level, which is a significant barrier to going higher, so if we were to break above there then it is likely that the market could go looking towards the $30 level eventually. All things being equal, I think that this is a market that continues to see buyers jump in and take advantage of the momentum every time they get an opportunity. Having said that, if we were to break above the $30 level, then it is likely that we could go looking towards the $50 level over the longer term. We have seen this attempted a couple of times in the past, and quite frankly this is going to be based upon the idea of the reflation trade coming back into vogue and of course higher demand for silver from industry in general.
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