Silver Price Forecast – Silver Pulls Back to 50 EMA Only to Find Buyers
Silver markets have rallied a bit during the course of the trading session after initially falling on Wednesday to find the 50 day EMA important enough to hang onto. The 50 day EMA sits at the $60 level, so that of course comes into focus as well. It is an area that has been supportive for a couple of weeks now, and it certainly looks as if silver is trying to stabilize currently. With that being the case, I like the idea of buying dips, but I recognize it is probably going to take a while to get to where we are going.
SILVER Video 06.05.21
If we did break down below the 50 day EMA, I think that the 200 day EMA then comes into focus, currently sitting at the $24.50 level. We also have the psychological barrier in the form of the $25 level, so I do think that in general we continue to find value hunters, but this is based upon the reopening trade, and not so much the US dollar as of late. In other words, it does have a fundamental catalyst to go looking towards the $28 level, but it is going to be a grind more than anything else. Because of this, I think you should keep your position size relatively small and billed as the trade goes in your favor. Shorting is not something I am interested in doing currently.
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This article was originally posted on FX Empire
