Silver Price Forecast – Silver Gapped Lower to Kick Off the Session
Silver markets eased to begin Wednesday's trading session, only to fill the gap and show signs of strength again. Ultimately, this is a market that I think will continue to show great volatility and so you need to be careful about the position size that you are building. This is how silver usually works anyway because it's such a loud contract. It is traded very thinly at times, so the moves can be quite drastic.
SILVER video 10/08/20
If you look at the candlestick, you can see that there is strong upward pressure, but the aforementioned 50-day EMA continues to offer resistance. The 50-day EMA is an area that many traders will be looking out for and therefore signs of exhaustion would appear and therefore it is likely that sellers will maintain this picture in the future, especially as the US dollar strengthens.
The US dollar obviously has a negative correlation with the sewer and has had a very strong negative correlation over the past 90 days. In this case, I think it is likely that we will go much lower and maybe go down to the $ 22 level and then the 200-day EMA. However, if we move above the 50-day EMA on a daily close, it could open a move towards USD 27 where we saw massive supply. Either way, I think this continues to be a very noisy market, not only because of the fact that it correlates with precious metals demand, but also because of an industrial component.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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