Silver Weekly Price Forecast – Silver Markets Bounce From 50 Week EMA

Silver markets have initially fallen during the course of the week to reach down towards the $24 level, only to turn around and bounce from the 50 week EMA. By doing so, we ended up forming a massive hammer which of course is a bullish sign and break above the top of that could open up a move towards the $26 level, possibly even back towards the $28 level. The silver markets may have a little bit more in the way of momentum than gold because it is less of an interest rate play and more of a play on the idea of the economy reopening.

SILVER Video 05.04.21

Keep in mind that the market did not really have a chance to react to the jobs number that came out on Friday, as the United States added 916,000 jobs for the month of March. That screams that we will probably have more industrial production in the country, and therefore demand for silver. At this point in time, I believe that silver outperforms gold, and that there is a bit of a “spread trade” to be had by going long silver in shorting gold if you are so inclined. It is not necessarily that I think gold is going to break down, rather that you can make the difference from the spread. If you do not know what spread trading is, I suggest that you look into it.

On the other hand, if we were to turn around a break down below the bottom of this candlestick, that opens up a move to the $22 level which is even more supportive. Breaking down below that kills any idea of an uptrend at that point.

For a look at all of today’s economic events, check out our economic calendar.