Advertisement
Advertisement

Silver Price Forecast – Silver Markets Sitting on 50 Day EMA

By:
Christopher Lewis
Published: Mar 1, 2021, 16:16 UTC

The silver markets have gapped a little bit higher to kick off the week on Monday, showing signs of resiliency as we attacked the $27 level.

Silver

In this article:

Silver markets have gapped a little bit higher during the trading session on Monday to kick off the week on a positive foot. That being said, this is a market that I believe is still bullish regardless of all of the noise that we see, with the 50 day EMA offering a certain amount of psychological support, as you can see over the last couple of months. The $28 level above is massive resistance, and if we can break above there then I think it is likely that we can go looking towards the $30 level. The $28 level has a significant amount of pressure attached to it though, so I do not think that breaking above there is going to be easy.

SILVER Video 02.03.21

One of the things working against the overall attitude of silver though is the fact that the US dollar has seen a bit of a bid due to higher interest rates, and that of course is negative for precious metals. That being said, silver also has the industrial component built into it as well, so it can thrive when gold cannot. If we do get a massive reopening trade, the demand for silver should skyrocket. If that is going to be the case, then silver finally break out. If and when it does, we will recognize that a huge move could come if we get above the $30 level, because historically that means that we are looking at a move towards the $50 level. We have seen this happen a couple of times in the past, so it would not be surprising or even that unprecedented for it to happen again. I believe there is significant support all the way down to the $24 level.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement