Silver Price Forecast – Silver Pulls Back to 50 EMA Only to Find BuyersThe silver markets pulled back a bit during the course of the trading session on Wednesday to reach down towards the 50 day EMA.
Silver markets have rallied a bit during the course of the trading session after initially falling on Wednesday to find the 50 day EMA important enough to hang onto. The 50 day EMA sits at the $60 level, so that of course comes into focus as well. It is an area that has been supportive for a couple of weeks now, and it certainly looks as if silver is trying to stabilize currently. With that being the case, I like the idea of buying dips, but I recognize it is probably going to take a while to get to where we are going.
SILVER Video 06.05.21
If we did break down below the 50 day EMA, I think that the 200 day EMA then comes into focus, currently sitting at the $24.50 level. We also have the psychological barrier in the form of the $25 level, so I do think that in general we continue to find value hunters, but this is based upon the reopening trade, and not so much the US dollar as of late. In other words, it does have a fundamental catalyst to go looking towards the $28 level, but it is going to be a grind more than anything else. Because of this, I think you should keep your position size relatively small and billed as the trade goes in your favor. Shorting is not something I am interested in doing currently.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For a look at all of today’s economic events, check out our economic calendar.