Silver Price Forecast – Silver Continues to Struggle With Same LevelSilver markets have done very little on Monday, as we continue to see a lot of noise in general, but it is likely that we will see the $26 level as a gateway.
Silver markets have gone back and forth during the trading session on Monday to kick off the week, as there is still a significant amount of noise and questions out there when it comes to the economy. Looking at the chart, the 50 day EMA sitting just below offers a little bit of support, just as the $26 level above is significant resistance. All things being equal, this is a market that continues to be a lot of back and forth exhaustion as we have seen over the last couple of days. The question now is whether or not we can break above the $26 level?
SILVER Video 26.01.21
If we can break above the $26 level, then it is likely that the market goes looking towards the $27.50 level, and then eventually the $28 level. That being said, the US dollar is a bit oversold though, so you should keep that in mind and recognize that the US dollar will have its say as well. The US dollar rallying typically is pretty negative for silver, which tends to have a negative correlation. Furthermore, we have to ask questions as to whether or not there is going to be industrial demand for silver, and whether or not there is going to be more stimulus coming.
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As of late, there are some questions about the size of stimulus, as Joe Biden may not get the $1.9 trillion that he was asking for. If that is going to be the case, silver may not be as bullish as once expected to be. However, I do think that with all of the stimulus around the world, silver will go higher over the longer term, so I am still bullish, and I look at a breakout as only a matter of time.