Silver markets have broken above the crucial $26 level, making it very likely that they are going to go looking towards the $27 level given enough time. Furthermore, the market gapped to open up the session, which is always a good sign of strength. Ultimately, I think that short-term pullbacks will continue to be buying opportunities, and the $25 level now looks to be very supportive. At this point, the 50 day EMA underneath is starting to tilt higher, which is a sign that momentum is starting to pick up. At this point in time, I believe that the market is probably going to go looking towards the $27 level, possibly even the $28 level.
SILVER Video 18.12.20
The 200 day EMA presently sits at the $22 level, an area that I had suggested was significant support in the “bottom” of the market. At this point, I would be rather surprised if we get anywhere near it. It does look as if we are going to go higher and with stimulus coming down the road it is very likely that we will see the “demand bid” enter the market again. Furthermore, the depreciating US dollar will naturally support silver as well. With that being the case, I like the idea of buying dips, but it is something that you certainly need to see on shorter time frames, as the daily timeframe still has a gap to fill underneath it.
Because of this, you may need to be a bit patient before you get some type of opportunity to get long again. Silver is very likely to go testing the $30 level given enough time, but keep in mind that this market can be very volatile.
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