Silver Price Forecast – Silver Markets Recover After Initial Draft

Silver markets have broken down a bit during the course of the trading session on Friday, only to find buyers on dips. This is a good sign, as it continues to see this market form a bit of a bullish flag. This bullish flag of course will attract a certain amount of attention, and it should be noted that the potential “measured move” of the trade is for a run towards $28, an area that has been important more than once in the past. With that in mind, I believe that we are looking at a scenario where the 200 day EMA is acting as a short-term “floor in the market.”

SILVER Video 22.11.21

As long as we can stay above the 200 day EMA, think there will be plenty of buyers willing to get involved, although silver does tend to be very noisy. With that in mind, it is very likely that we need to see a clearance of the $25.50 level to get truly bullish, and you are probably better served simply waiting for some type of break out to add to a position. As long as we stay above the 200 day EMA, I am not overly concerned about negativity, but if we did break down below there, then we could go looking towards the $24 level.

Any break below the $24 level would almost certainly open up quite a bit of selling pressure, probably backed by a significant strengthening of the greenback. As things stand right now, it seems to me that most traders are focusing on the industrial use of silver more than anything else as the reopening trade continues to be a major driver.

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