Silver Price Forecast – Silver Markets Testing 50 Day EMA

Silver markets have reached towards the 50 day EMA during the trading session on Tuesday as traders came back to work in the United States. Ultimately, it does look like we are struggling to bit to continue going higher, but if we can break above the highs of the trading session on Tuesday, then it is very likely that we will go higher to reach towards the gap above. If we fill that gap, then the market would go looking towards the $27.75 level.

SILVER Video 07.07.21

If we do pull back from here, I think there is a significant amount of support, especially underneath as the 200 day EMA, and the $26 level. On that pullback, I would be looking for some type of supportive candlestick, perhaps something along the lines of a hammer, and at this point time I think it is very difficult to imagine a scenario where I would be a seller, at least as long as the market can stay above the $25 level.

If we were to break down below the uptrend line in the ascending triangle, which is essentially just below the $25 level, then it is likely that we could go much lower. If that happens, then I anticipate a five dollar drop, making the silver markets look towards the $20 an ounce level. While I do see that this is possible, I find it to be very unlikely as silver is continuing to see a tight supply, as well as high demand due to the reopening trade. Yes, it can be part of the precious metals trade, but at this point it looks more or less as a bit as the industrial trade that is driving this market.

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