Silver Price Forecast – Silver Markets Sit on Top of Support

Silver markets have gone back and forth during the course of the trading session on Friday as we continue to hang around the $25 level. The $25 level of course will attract a certain amount of attention just due to the fact that it is a large, round, psychologically significant figure, but furthermore we also have the 200 day EMA sitting just below the hammer that formed on Thursday. Was this the bottom of the pullback? It is a bit premature to say so, but it is most certainly a good sign so far.

SILVER Video 29.03.21

If we were to break above the top of the candlestick for the trading session on Friday, then it opens up the possibility of a move towards the $26 level. The 50 day EMA sits there as well, and as a result I think it is a decent target for buyers if we do go higher. On the other hand, if we pull back from here then it is possible that we could go down towards the bottom of the candlestick from the Thursday session, which is backed up by the 200 day EMA and the $24 level underneath.

Pay close attention to the US dollar, as it will most certainly have a major influence on what happens next, as silver tends to be a complete negative correlation to the greenback. There is the argument that there is going to be significant demand for silver due to the infrastructure play this coming out of the in a sense, but we will have to see whether or not that plays out. At this point, it certainly looks as if the buyers will have something to say.

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