Silver Price Forecast – Silver Markets Continue to Consolidate

Silver markets have initially rallied during the trading session on Friday, as we continue to hang about the $26 level, an area that has been important more than once. Furthermore, the 200 day EMA sits underneath, right along with the uptrend line. With that in mind, I think that there is plenty of support to keep this market afloat, and unless something changes significantly from a fundamental standpoint, it is difficult to imagine a scenario where silver falls apart. In fact, it is not until we break down below the $25 level that I would start to worry about the overall attitude of silver.

SILVER Video 28.06.21

Keep an eye on the US dollar, because if it does significantly strengthen, that could work against silver, but at the end of the day there seems to be a lot of focus paid to the economic recovery and of course the pickup in demand for silver, not only from an industrial standpoint, but also some traders looking forward towards the “electrification” of infrastructure in the United States, which could possibly call for quite a bit more silver. (Copper as well.)

Regardless, if we can break above the highs of the past couple of sessions, it is very likely that we will go higher to try and fill the gap above at the $28 level. One thing is for sure, silver seems to be outperforming gold and I think that is because of the actual use case scenario, which of course silver has much more in the way of compared to gold. All things been equal, this is a market that I have no interest in shorting and if you have a longer-term outlook, you could focus on the $30 level above, because if we can break above there it is likely that we could go reaching towards $50 over the longer term.

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