Silver Price Forecast – Silver Markets Sitting on 50 Day EMA

Silver markets have gone back and forth during the course of the trading session on Monday, as we continue to see a lot of questions about the potential reopening play. Silver of course is highly sought after when it comes to the industrial play, and therefore a lot of people will be looking at the market as a way to get involved in the “reopening trade.” Having said that, it has been a bit sluggish, and surprisingly so. While we have seen copper take off, silver has been a bit of a laggard.

SILVER Video 27.04.21

Underneath, the 50 day EMA offers short-term support, and as long as we can stay above there one would think that there will be a certain amount of trading public looking to get involved. However, if we break down below it then I think silver goes looking towards the $25 level. $25 underneath could be thought of as a large, round, psychologically important figure, so if we were to break down below there then I believe that the 200 day EMA comes into play which most traders use as a trend defining indicator. If we break down below there, then silver is probably in serious trouble.

On the other hand, if we turn around a break above the highs from last week, it is likely that silver will continue to go much higher, perhaps reaching towards the $28 level, possibly even the $30 level after that. We have seen a nice recovery as of late, so it looks like we will still have to favor the upside but recognize that it will be very noisy.

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