Silver Price Forecast – Silver Markets Testing Support

Silver markets have initially fallen during the trading session on Thursday to slice through the $25 level. The $25 level extends down to the 200 day EMA, and therefore it is not a huge surprise that we have turned around to form a bit of a hammer midday. That being said, if we were to break down below the 200 day EMA, or by extension the $24 level, then we will probably go down to the $22 level next. The $22 level being broken would be a massive trend change, and silver would probably collapse at that point, perhaps looking towards the $12 level. Obviously though, that would be an extreme shift.

SILVER Video 26.03.21

To the upside, if we can break above the highs from the trading session on Wednesday, it is possible that we could go looking towards the 50 day EMA, or perhaps even the $26.50. All things been equal though, the market has been extraordinarily weak due to a strengthening US dollar, so with that in mind I would be very cautious about jumping into the silver markets. I certainly would not be leveraging a huge position at this point.

I think that the only thing you can count on in this market right now is going to be a lot of volatility, so it is likely that we would continue to see a need to be very cautious about how much money you put into the market at any one point in time. However, if the trade does work in your favor, especially to the upside, then you can start to add to a position. However, I think we will continue to be held hostage to whatever is going on with the greenback.

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