Silver Price Forecast – Silver Markets Continue to Find Support at Same Level

Silver markets have initially fallen during the trading session on Friday but then turned around to show signs of life again as the $26 level continues to offer significant support. Keep in mind that there is still a major gap above that extends all the way to roughly $27.75, that has yet to be filled. Because of this, we could see an attempt to get up there, but we need to see some type of “risk on attitude” in the market.

SILVER Video 12.07.21

Keep in mind that the value of the US dollar can work against the silver market, but silver is a little bit different than some other precious metals, because it also has the industrial demand portion that comes into play as well. Because of this, we need to take a serious look at the market through the prism of the reopening trade. If industry continues to pick up, then it does make quite a bit of sense that we would see demand for silver pick up.

That being said, the area above the gap that extends all the way to the $30 level is a major resistance barrier, and I think it is going to be difficult to get above it. Because of this, I think that the upside is somewhat limited but if we were to break above the $30 level, this market could take off for a huge move towards the $50 level.

To the downside, there is an uptrend line, the 200 day EMA, the $25 psychological barrier, and several other minor barriers that could offer support. It is not until we break down below the $25 level that I would be comfortable selling.

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