Silver Price Forecast – Silver Continues to Find Buyers on Dips

Silver markets fell a bit during the course of the trading session on Monday, reaching down towards the $27.50 level before turning around to show signs of life again. By doing so, the market ended up forming a hammer, sitting at the $28 level which of course is a large, round, psychologically significant figure. It also begins resistance all the way to the $30 level, so that being said it is likely that we would see a lot of struggling just above before we could break out. If we can clear the $30 level, that would open up a flood of buying activity, perhaps sending the market looking towards the $50 level.

SILVER Video 09.06.21

At this juncture, silver looks like it is trying to build up enough pressure to finally make a bigger move, but at this point in time it is still struggling and the fact that we are worried about whether or not there actually is inflation, it makes quite a bit of sense that silver would struggle. However, the 50 day EMA underneath continues offer support, and it is a technical indicator that a lot of people will pay attention to.

Furthermore, we have been in an uptrend for a while and are in the midst of an ascending triangle, so that is of course a significant indicator that a lot of people will be paying attention to, so I like the idea of buying dips as it offers a bit of value. Silver should continue to pick up demand in the reopening the economy, as industrial usage will pick up quite significantly. At this point, I have no interest in shorting this market whatsoever.

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