Silver Price Forecast – Silver Testing Major Support
Silver markets have broken down a bit during the trading session on Friday, reaching down towards the $22 level. We have seen a bit of a bounce from that area though, as we are starting to approach the 200 day EMA. It is also worth noting that the 38.2% Fibonacci retracement level has been drifting around this area as well, so I think it is only a matter of time before the buyers would come back in and pick this market up. That is of course, all things being equal. What is worth noting though is that it is more of a “risk on rally” that we are seen around the world right now and that has multiple influences on silver going on at the same time.
SILVER Video 30.11.20
Silver of course is highly influenced by the US dollar, as it does have a bit of a negative correlation most of the time. However, the silver markets also have the question as to whether or not there is going to be industrial demand, and I think at this point in time that is one of the stronger arguments for silver to go higher. Furthermore, market participants should continue to see an underlying demand for precious metals in general as central banks around the world continue to flood the markets with liquidity. Because of this, I think what we are looking at here is a potential of support, and we may see a little bit of a turnaround as silver may actually lead gold for once.
Nonetheless, I think that we have plenty of time before we need to start buying so although I do like the idea of buying this dip, I may wait until we get the Monday candle printed in order to do so.
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This article was originally posted on FX Empire
