Silver Price Forecast – Silver Markets Struggling With 50 Day EMA

Christopher Lewis
Published: Sep 6, 2021, 15:53 UTC

The silver markets have pulled back just a bit during the course of the trading session on Monday as the 50 day EMA continues to be of interest.

Silver Price Forecast – Silver Markets Struggling With 50 Day EMA

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Silver markets have pulled back ever so slightly during the trading session on Monday, as the liquidity of the market would be a bit of an issue. After all, the 200 day EMA above has offered resistance and is sloping lower, reaching towards the $25 level. The silver market is going to be highly sensitive to the US dollar, so keep in mind that the US Dollar Index is going to be crucial to pay close attention to.

SILVER Video 07.09.21

That being said, it is very likely that the area between the 50 day EMA and the 200 day EMA will attract quite a bit of attention. The size of the candlestick is of no matter, because quite frankly with that being Labor Day in the United States and Canada, a lot of the liquidity trading silver would have simply not been there. Because of this, I would not read too much into the Monday candlestick, and we will have to wait to see whether or not we pull back. On the other hand, if we were to turn around a break above the 200 day EMA, then it is very good sign that perhaps we could continue to go higher.

If the dollar rises, that will put downward pressure on silver, especially as we have to question whether or not the institutional demand for silver will continue to be strong. There are a lot of questions out there as to whether or not the economy is going to recover from here, or if we are going to roll back over? Some of the PMI numbers recently have suggested that perhaps the latter of the two, but in the short term we have to pay close attention to the bullish candlestick from the previous session.

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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.

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