Silver Price Forecast – Silver Markets Continue Recovering

Silver markets have rallied a bit during the trading session on Thursday again, breaking above the $26 level. At this point, the fact that we are above there is a good sign, as we have broken above the top of the hammer from the previous session. That is a classic technical analysis type of play, and therefore I think that a lot of traders are willing to get involved here. This of course does not necessarily mean that we are going to go straight to the top again, as the previous “FOMO trade” clearly has gotten wiped out.

SILVER Video 14.08.20

There are a lot of retail traders that I know personally that have written me to express absolute panic as they got margin calls. This is the problem with parabolic markets, they almost always have some type of move like this. Having said that, it is very healthy for the overall uptrend and now it makes quite a bit more sense to be going long.

Underneath, I see the $24 level as massive support, so if we stay above there then I think we will eventually test that $30 level, but we will not get there as quickly as we did the previous time. Knowing that, it is a matter of pulling back and looking for value occasionally before adding to a position. I would love to see this market drop down towards the $21 level, but I do not know that it happens anytime soon. Overall, this is a market that will continue to benefit from the Federal Reserve and its ultra-loose monetary policy.

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