Silver Price Forecast – Silver Markets Recapture $22
Silver markets have rallied significantly during the trading session on Thursday to recapture the $22 level, an area that has been important more than once. At this point, it will be interesting to see whether or not we have enough momentum to continue going higher, or will we turn around and fade? I would have to assume that the downward momentum is still there, so really at this point in time it is not until we break above the $23 level that I would think the market takes off to the upside.
SILVER Video 01.10.21
Because of this, I think it is only a matter of time before we see selling pressure, as the US dollar is like a wrecking ball for silver markets. Furthermore, we also have to pay close attention to industrial demand, and that of course is a major factor. The market has been in a downtrend for some time, and therefore I think that continues going forward. All things been equal, the market is likely to continue to see a lot of noisy behavior, but quite frankly I do not believe that you should simply jump in and start shorting, rather you need to see some type of exhaustive candle on either a short-term chart or at the very least a daily close below the $22 level to get involved again.
On the other side of the equation, if we get a daily close above $23, then your next fight is going to be at the 50 day EMA, and then the 200 day EMA which is currently sitting just below the crucial $25 level. The question now is whether or not that support level we broke on the weekly chart is going to finally give way, or was it a false breakout?
For a look at all of today’s economic events, check out our economic calendar.