Silver Forecast: November 2020

Robert Petrucci

Silver has incrementally risen in value during October and shown the ability to sustain its higher values.

Silver will likely enter the month of November with its stronger values intact. After suffering from declines towards the end of September when the commodity saw a wave of profit taking after advancing to noteworthy higher values, Silver has found incremental bullish momentum. A value range of 23.00 to 25.60 USD per ounce has been demonstrated since the end of the first week of October.

Silver may be looked upon as the weak sister by inexperienced Gold traders, but this is a wrong notion and one which may create a lack of opportunity for those who don’t participate in the market.  Silver is a worthwhile avenue for speculators to participate in commodities and one which offers the capability to enjoy dynamic intrigues.

Silver is trading comfortably below the upper values of its October highs and it has incrementally been able to produce higher support levels. Since reaching a high of nearly 25.58 around the 12th of October and then suffering a reversal lower, Silver has produced a rather solid bullish trend. The price did test low support near the 23.55 USD level the middle of October, but has risen since then and created a fairly consistent range without too much volatility.

Going into November as the US elections shadow the investor landscape, questions regarding speculative opportunities via risk reward scenarios when judging investor sentiment should be considered.   Silver has proven that it is capable of producing volatility and in early August the commodity traded above the 29.00 USD level. While Silver has certainly seen a decline in value since then, the commodity has also shown an ability to regain its composure and reignite upwards momentum.

What should intrigue speculators via technical charts is that the current price of Silver is hovering slightly below important resistance levels which if broken higher and sustained, then present opportunities based on an absence of quantified trading due to a gap in value.  On the 18th of September the commodity fell from values of nearly 26.70 to 24.70 USD per ounce. The question traders need to ask themselves is if Silver has the capability to challenge these mid-September values again in the coming month.

Silver does seem to have adequate support near the 23.50 to 23.00 USD junctures.  If these support levels can hold and the commodity sees an impetus of dynamic buying emerge based on risk adverse trading, Silver may prove to be a worthwhile buying opportunity. The results of the US election may prove to have an impact on the price of commodities particularly within the precious metals. Silver traders may believe a rise in risk adverse positions by investors could be a catalyst for higher prices. Interestingly, even if risk adverse trading is not a factor, technical charts suggest that the current price of Silver may be evidence the commodity is being accumulated and laying the groundwork for another move.

The month of November may be an opportunity to buy Silver based on the combination risk adverse trading may rise and the perception the commodity looks attractive because of technical charts which suggests there is a potential to resume higher values.  The commodity has shown the ability the past few weeks to sustain its gains and incrementally produce higher support levels. Silver has achieved its higher values recently without a great deal of volatility too, which suggest its gains are not happening in market conditions which are over exuberant, meaning speculative buying may consistently build additional momentum over time. From a risk reward scenario, traders may be tempted to believe there is more upside capability than downside potential and pursue buying positions.

Silver Monthly Speculative Forecast:

Current Resistance: 25.25 USD

Current Support: 23.85 USD

High Target: 27.20 USD

Low Target: 22.85 USD

Silver

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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