Silver Price Forecast – Silver Markets Stall at 50 Day EMA

Silver markets have rallied ever so slightly during the trading session on Monday, but it should be kept in the back of your mind that Monday would have been very quiet due to the fact that the Americans were away celebrating the extended Independence Day holiday. That of course will have an effect on the futures market, so I would not read too much into the candlestick other than the fact that we had nowhere to be. The 50 day EMA sits just above, and that could be a bit of resistance. If we can break above there, then it is likely that we could go looking towards the gap above, as futures prices do tend to fill those gaps.

SILVER Video 06.07.21

A pullback from here could offer plenty of buying opportunities, as long as we can stay above the 200 day EMA which currently sits at the $25.50 level. The gap above could extend the market all the way to the $27.75 level, and therefore I think it is probably more bullish than bearish, offering a “buy on the dips” type of situation, which silver has been for quite some time. In fact, it is not until we break down below the $25 level that I would be concerned, which is in and of itself important due to the fact that it is also the bottom of the ascending triangle.

If we do break down below the ascending triangle, then it is very likely that the silver market will fall apart and perhaps go looking towards the $20 level, which obviously would be a very significant move that could cause quite a bit of a “wrecking ball effect” in this market.

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