Silver Price Forecast – Silver Markets Show Signs of Hope for StimulusSilver markets have rallied a bit on Tuesday to break above the 50 day EMA, and then of course made an attempt to reach towards the $25 level.
Silver markets continue to see slightly bullish pressure, as we have broken above the 50 day EMA. Ultimately, the market is waiting to see whether or not we are going to get some type of stimulus coming out the United States. There is a bit of hope that we will see it, as Tuesday is anticipated to be the “do or die” session. That being said, there are a lot of concerns out there and therefore one would have to wonder whether or not the silver market will see as much demand going forward. Yes, there is the potential precious metals trade, but silver tends to be thought of more as an industrial metal for the longer-term move.
SILVER Video 21.10.20
Looking at this chart, the 50 day EMA is sloping slightly lower, so I do think that there is the possibility that we get a bit of a pullback, but I am not willing to short this market. I recognize that this is a market that will continue to be very noisy, but I think longer-term we still have a lot of central banks out there looking to flood the markets with liquidity. If that is the case, that should continue to make an argument for hard assets, at least over the longer term. I think that silver probably drops a bit from here, but I would be very interested in buying at $24, $22, and then the 200 day EMA which will attract a lot of attention. Having said that, we have a lot of volatility ahead of us so keep it a small position will be the most important thing.
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