Silver Price Forecast – Silver Markets Continue Consolidation

Silver markets have gone back and forth during the course of the trading session on Monday as we continue to see this market sit just above the 200 day EMA. At this point, the market looks as if it is very comfortable sitting just above the $26 level, just as the 50 day EMA above continues to offer resistance. The 50 day EMA is sloping lower, so that of course as a bit of bearish pressure in this market, so I think it is only a matter of time before we would have a certain amount of selling pressure in that area. If we can break above that 50 day EMA and perhaps even the $27 level, then it is likely that we could go higher to fill the gap, perhaps opening up a move towards the $27.75 level.

SILVER Video 13.07.21

Looking at the shape of the candlestick, it does suggest that we probably have more buyers underneath than anything else. At this point in time, this is a market that has massive support underneath that I think would be difficult to fight against, especially as the larger context of the market is an ascending triangle, and of course we have to pay close attention to the $25 level. I think in the short term, we probably have more back-and-forth sideways action than anything else. Ultimately, one thing that we pay close attention to is the industrial demand for silver, which still seems to be rather strong, but it should be noted that the US dollar strengthening of course has worked against it at the same time. Furthermore, we need to pay close attention to commodities in general, which are starting to show some cracks.

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