Silver Price Forecast – Silver Markets Pullback After Initial Surge Higher
Silver markets have rallied significantly during the trading session on Tuesday but gave back the gains rather quickly as the silver markets look a bit exhausted. At this point, I believe that the $28 level is crucial, so if we can hold that then I think the market still can continue to go looking towards the $30 level above. That being said, the $30 level quite often opens up the possibility of a move towards the $50 level, which has been attempted a couple of times in the past.
SILVER Video 19.05.21
To the downside, if we break down below the $28 level then I am going to take a look at the 50 day EMA as potential support, and I certainly would be looking for some type of supportive candlestick on the daily close in order to get involved. Alternately, if we turn around a break above the top of the candlestick for the trading session on Tuesday, that will almost certainly show that the market is ready to go looking towards the $30 level.
The $30 level is going to be very difficult, but if we can get above there then I think it will bring in a flood of fresh money. It is obvious that we are trying to build up some type of base and momentum to go higher, but right now it looks as if we are going to fail, albeit maybe just for the short term. Pay close attention to the US dollar, because if it continues to get lambasted, then it is likely that silver will be one of the main beneficiaries.
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This article was originally posted on FX Empire
