Silver Price Forecast – Silver Markets Continue to Get Squeezed
Silver markets have initially tried to rally during the course of the trading session on Thursday to reach towards the 50 day EMA, but then gave back the gains to form a less than attractive looking candlestick for buyers. At this point, the market is likely to continue to go sideways, as there is nothing at this point in time to suggest that we should go anywhere. We are currently sitting between the 50 day EMA above and the 200 day EMA underneath. In other words, technical traders are looking at this from both directions.
SILVER Video 16.07.21
To the downside, the market is likely to continue to see the 200 day EMA, the uptrend line from the ascending triangle, and then the $25 level as all opportunities for buyers to come in and pick the market up. If we were to break through all of that, it would be an extraordinarily negative turn of events, and could send this market much lower, perhaps sending silver to spiral towards the $20 level.
To the upside, if we were to break above the 50 day EMA, then the market is likely to go looking to fill the gap above, which means that we could rise all the way to the $27.75 level. Above there, then we have massive resistance that extends from the $28 level towards the $30 level. Breaking above the $30 level allows silver to make a massive “short squeeze” higher, but as time goes on this is starting to look less and less likely. At this point, you should also pay very close attention to the fact that the US dollar starting to make inroads as well, and if it starts to strengthen further, that might be the thing to keep this market over.
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