Silver Price Forecast – Silver Markets Pull Back to Familiar Level

Silver markets have fallen a bit during the course of the trading session on Monday to reach down towards the psychologically and structurally important $25 level. This is an area that of course would attract a lot of attention, and it is worth noting that the market pulling back towards that area tends to kick off algorithm traders, and of course is worth noting that the market has been very strong as of late, meaning that a pullback is probably something that was needed. Because of this, I think at this as a potential “value play”, as long as we can stay above the $24.50 level, or perhaps even more specifically, the 200 day EMA that sits just above there.

SILVER Video 16.11.21

To the upside, if we can take out the highs of both Friday and Monday, meaning clearing the $25.50 level, then it is likely that the uptrend continues, and we go much higher. Strengthening US dollar certainly is going no favors for this market as well, as it is of course priced in that very same currency. Ultimately, this is a market that has a bigger move to make, but the 50 day EMA curling higher to reach towards the 200 day EMA suggests that we are going to form a bit of a “golden cross”, so therefore a lot of longer-term traders will be paying close attention to the attitude of the market as well. It suggests that we are going to go higher eventually, but that does not necessarily mean that it happens in the short term. With this being the case, the market continues to look as if it broke out of an inverted head and shoulders, which of course is a very bullish set up as well.

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