Silver Price Forecast – Silver Continues to See Support Just Below

Silver markets initially pulled back during the trading session on Wednesday but continues to find the 50 day EMA as a bit of support. At the $26 level above, there should be a certain amount of resistance, but if we can break above there it is likely that we continue to go higher, perhaps reaching towards the $28 level. Silver of course is highly sensitive to what is going on with the US dollar, so make sure you pay attention to the US Dollar Index. The US dollar has been oversold for a while, and that is part of what we have seen as of late, right along with 10 year notes rising as far as yield is concerned. That had people buying the greenback, which works against the value of silver, however temporarily.

SILVER Video 14.01.21

All things being equal, we are still in some type of bottoming pattern, and it is likely that we are going to continue to go higher, perhaps reaching towards the $20 level before trying to get to the $30 level. To the downside, the $23 level is roughly where the 200 day EMA is, and I think we would find buyers in that general vicinity trying to lift this market higher as well. Either way, I have no interest in shorting silver, at least not at the moment. Quite frankly, if you are shorting precious metals, you are simply buying the US dollar so there is no need to do both. The reflation trade should continue to push metals higher, including the silver market which has a certain amount of an industrial use case.

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