Silver Forecast 26/08: Pullback From $39 (Video)

(MENAFN- Daily Forex)

• Silver has pulled back a bit during the trading session on Monday after an explosive move on Friday.
• All things being equal, this is a market that I think continues to see a lot of volatility, and that does make a certain amount of sense because most of the time, silver is volatile. It looks as if the $39 level has offered a little bit of a short-term barrier, but if we can clear that, then I think we could see a move towards the $40 level.

A short-term pullback at this point in time would make perfect sense. And I think we could drop all the way down to the $37.50 level, which is an area that's been massive support multiple times in the past. The 50-day EMA is right there as well. So, I think it all ties together for a potential buying opportunity if we do in fact drop down to that level.

Dollar Trying to Recover

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Keep in mind that the Monday session has seen some U S dollar buying and that of course does have a negative influence on silver overall. Silver is also an industrial number as well though. And therefore, you have to be very cautious about going hand over fist because you could see economic numbers out there that spook traders and it will work against the value of silver. So, it's not just a precious metal, and that's the big takeaway here. Unfortunately, lot of traders will just look at silver as gold, basically, and it's not. They're two completely different markets, and if there are concerns about industrial demand, and there is at the moment, that does put a little bit of a cap on the upward trajectory of silver. Regardless, though, I like the idea of buying dips, and if we can break $40 to the upside, this thing could really take off.

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