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

By:
Christopher Lewis
Published: Oct 29, 2021, 16:39 UTC

The silver markets have pulled back a bit during the trading session on Friday to reach down towards the 50 day EMA but have since bounced enough to show signs of life.

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

In this article:

Silver markets have pulled back a bit during the course of the trading session on Friday to test the 50 day EMA. The 50 day EMA of course is a significant technical indicator that a lot of people pay attention to, so it does make a certain amount of sense that we would see a little bit of a bounce. Whether or not we can sustain this probably has more to do with the US dollar than anything else, as it has such a huge negative correlation. At this point, the market is likely to see quite a bit of noise, and if we were to break down below the 50 day EMA is possible that the market could go looking towards the $23 level.

SILVER Video 01.11.21

To the upside, the 200 day EMA is sitting at the $24.55 level. At this point, that is a significant amount of resistance just waiting to happen. At this point, the market would then go looking towards the $25 level. Breaking above the $25 level allows the market to go much higher, perhaps reaching towards the $26 level.

If we were to go lower from here, there is a significant amount of support just waiting to jump in the markets, as the silver market is highly correlated to the reopening trade, which of course is a big deal. Silver is a major industrial metal, and of course has a lot to do with the “green deal” that so many governments around the world are trying to get involved in. This being the case, I think that we have more volatility ahead more than anything else.

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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