Advertisement
Advertisement

Silver Weekly Price Forecast – Silver Markets Continue to Find Buyers

By:
Christopher Lewis
Published: Nov 20, 2020, 18:16 UTC

Silver markets have initially pulled back during the course of the week but then turned around to show signs of support yet again.

Silver

Silver markets have pulled back a bit during the course of the week, but only to find buyers again just below the $24 level. This makes quite a bit of sense, as central banks around the world continue to flood the markets of liquidity and thereby drive up demand for wealth preservation via precious metals. Furthermore, we also have to take a look at the possibility of industrial demand, and that of course is something that we need to pay attention to. After all, if there is more of a “risk on” type of attitude out there, people will start buying silver based upon the idea that there will be more industrial demand.

SILVER Video 23.11.20

All things being equal, the 38.2% Fibonacci retracement level at the $22.75 level should continue to offer support. That is where the massive red candlestick from the pullback stopped, and at this point in time it is massive support and something that people will be paying attention to. However, if we were to turn around a break down below that massive red candlestick, then we probably go looking towards the $20 level. That being said, I think there is no real reason to be shorting silver, due to the fact that the US dollar will continue to suffer, just as other fiat currencies will be due to central bank intervention.

I do believe that eventually we go looking towards the $30 level again, but this pullback makes quite a bit of sense considering just how straight up in the air we had raced previously. After all, you need to grind sideways and digest gains when you have that type of move, just as we have done.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement