Silver Price Forecast – Silver Markets Show Signs of Support
Silver Price Forecast –
Silver Markets Show
Signs of Support
Silver has pulled back a bit on Thursday only to find buyers jumping back into the space. That being said, this is a very volatile market and will remain so.
Silver markets have initially pulled back a bit during the trading session on Thursday but then turned around to show signs of life again. By doing so, it looks as if we are probably going to try to get back to the $28 level, possibly even higher than that given enough time.
The $20 level has been resistance, and of course there is a gap there that would come into play. In other words, expect a lot of noise in this market and it could be driven due to a move in the US dollar, and of course the overall reflation trade that has been a major driver of silver.
The theory of course is that if stimulus is strong enough, there will be enough industrial demand for silver to drive prices higher. Furthermore, stimulus drives on the value of the greenback over the longer term, and then a falling US dollar repeats the cycle, therefore sending precious metals higher in general.
The $30 level above is a major resistance barrier, but if you can break above there then the market is likely to go looking towards the $50 level which is a large figure that markets have attempted to break through a couple of times in the past, and therefore it will act like a magnet if we finally get that “buy-and-hold” parabolic move that silver is known for.
Short-term pullbacks at this point time should see plenty of support near the $25 level, and of course the 200 day EMA which is trying to resource the $24 level now.
Sources: FX Empire
By: Christopher Lewis