Silver Price Forecast – Silver Markets Testing 200 Day EMA
Silver markets initially gapped higher during the trading session on Monday to kick off the week on the right foot, pulled back to fill the gap, and then turned to reach towards the 200 day EMA. The 200 day EMA is a significant technical indicator that a lot of people pay close attention to, and therefore I think at this point in time it represents the beginning of a significant barrier that extends all the way to the $25 level. The $25 level of course is an area that will attract a lot of psychological importance, and if we can clear it, that probably gets more people in the market looking to buy more silver.
SILVER Video 09.11.21
When you look at the chart, a break above the $25 level would kick off a bit of an inverted head and shoulders, which is a very bullish sign. At that juncture, it signifies a potential “measured move” to the $28.50 level. That is an area that has previously been important, so all things being equal it is likely that we would continue to see a lot of profit-taking. This is not to say that we get there very easily, and obviously this would be a longer-term trade.
Pullbacks at this point in time could see plenty of support near the 50 day EMA, which sits at the $23.75 level. At this juncture, I believe it is only a matter of time before buyers come back into the picture, but if we were to break down below that 50 day EMA, it could open up a move down to $23. Any breakdown below there could open up a move to the $22 level.
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