Silver Price Forecast – Silver Pulls Back From 200 Day EMA

The silver market pulled back during the trading session on Tuesday, as the 200 day EMA continues to offer quite a bit of noise. When you look at this chart, we are currently squeezing between the 200 day EMA above, with the 50 day EMA sitting underneath. The two moving averages of course are widely followed by technical traders around the world, so it does make a certain amount of sense that we will continue to see a lot of push and pull in this general vicinity. If we were to break down below the 50 day EMA, then it is likely that we could go much lower, perhaps reaching towards the $23 level. As things stand right now though, that is not my base case scenario.

SILVER Video 10.11.21

On the other hand, if we could break above the $25 level, that could allow the silver market to go much higher, perhaps even reach towards the $28 level based upon the “inverted head and shoulders” that would have kicked off at that point. In general, this is a market that I think continues to see a lot of noisy behavior, which is typical for silver. All things being equal, this is a market that I think will be highly influenced by the US Dollar Index as per usual, and of course interest rates coming out of America. Nonetheless, I think we have a significant amount of demand for commodities overall, and of course silver is a little bit better suited due to the fact that industrial demand is a major component.

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