Silver Price Forecast – Silver Markets Rally Towards 50 day EMA

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.