Silver Price Forecast – Silver Markets Continue Grind Higher
Silver markets have initially fallen during the trading session on Friday but then turned around to show signs of strength again. By doing so, it suggests that we are going to continue drifting higher, and it is probably worth noting that we have essentially formed a double bottom near the $21.50 level. Because of this, the question now is whether or not the trend will stay intact? If that double bottom means anything, we could very easily find silver at $25 over the longer term. Obviously, that is not going to happen overnight, but it is something to consider.
SILVER Video 27.12.21
To the downside, I think that there is a lot of support underneath, so I do not necessarily want to short silver anytime soon, because it has been so resilient as of late. Because of this, I am paying close attention to the US dollar, and then of course keeping that negative correlation in mind to this market if I were to place a trade. The 50 day EMA currently sits at the $23.16 level, and I think that your next target all things being equal.
Keep in mind that next week will be very thin, so I would not get overly aggressive, but you can certainly see the reasoning for having a small long position on in silver at the moment. I certainly do not have any interest in shorting this, at least not until something changes quite drastically in its behavior, which looking at the longer-term chart simply means to me that it is more or less a range bound between $21.50 and $25.
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