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Silver Price Forecast – Silver Markets Rally Towards 50 day EMA

By:
Christopher Lewis
Published: May 7, 2020, 15:48 UTC

The silver markets rallied a bit during the trading session on Thursday, reaching towards the 50 day EMA. The $15.00 level of course is a large, round, psychologically significant figure. At this point, the market is simply grinding back and forth.

Silver

Silver markets have rallied a bit during the trading session on Thursday, as there was a bit of a “risk on” attitude to the markets overall. Silver of course has a significant industrial component built in, so if the market has more of a “risk on” feel to it, then it makes sense that perhaps silver will be a beneficiary. Having said that there is a lot of resistance above the 50 day EMA as well, so at this point it is only a matter of time before we pull back a bit, but the pullback could be a buying opportunity. Keep in mind that the job summer comes out on Friday and that could throw a lot of risk appetite around the markets, and therefore could have a bit of a “knock on effect” over here.

SILVER Video 08.05.20

The $14.80 level underneath offers a significant amount of support, as we have bounced from that level couple of different times. The 50 day EMA has offered resistance, and the 200 day EMA is at the $16.33 level. At this point, it is highly likely that we will continue to go back and forth in this range. To the downside, I see that the $14.50 level and the $14.00 level underneath that offers support. A lot of back and forth choppiness will continue to be a major factor into how this market trades, as silver is not only a precious metal, but it is also an industrial metal as well, so depending on the situation, it can trade like gold, or it can trade like copper.

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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