Silver Price Forecast – Silver Markets Rally But Pull Back

Christopher Lewis
Published: Oct 27, 2020, 15:51 UTC

Silver markets tried to rally for the trading session on Tuesday but pulled back from the 50 day EMA to form a less than impressive candlestick.


In this article:

Silver markets rallied a bit during the trading session on Tuesday only to find resistance near the 50 day EMA. By pulling back from that moving average, it shows that we are going to continue to struggle in general, and it looks like we are going to reach down towards the $24 level. If we can break down below there, then the market is likely to go looking towards the $22 level. Underneath, the 200 day EMA is going to offer quite a bit of support as well. In other words, I do think that it is only a matter of time before the buyers return. Having said that, I have no interest in trying to get too cute with this and I recognize that this is a market that is on edge.

SILVER Video 28.10.20

You could make an argument that we are forming a little bit of a “rounding top”, but I would not read too much into it. With central banks around the world throwing liquidity into the marketplace, it is likely that we are going to eventually see people buying “hard assets.” I would love to get an opportunity to buy silver based upon some type of supportive daily candlestick, or even better yet, a weekly candlestick. As we have the election next week, I suspect that the markets in general will probably go back and forth overall, and silver will probably continue to be the same way. Ultimately, this is simply a matter of looking or value and taken advantage of it.

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.

Did you find this article useful?