Silver Price Forecast – Silver Markets Continue to Hang at Big Figure

Silver markets have initially fallen during the trading session on Tuesday but found buyers underneath to continue to keep this market somewhat afloat. After all, silver continues to get a bit of a boost due to a weakening US dollar, and of course the idea of potential inflation. John that, we also have the situation where traders are looking at industrial demand, which of course silver is highly correlated with.

SILVER Video 26.05.21

Looking at this chart, I do believe that if we can break above the highs from a week ago, then the market is likely to go looking towards the $30 level. The $30 level is a large, round, psychologically significant figure that has attracted a lot of attention in the past, so I do believe that if we can break above there then it is likely that we see a massive move to the upside and will eventually bring in a flood of new money. In fact, when you look at the historical charts, you can see that we have only broken above the $30 level couple of times, and we continue to look at the possibility of a move towards the $50 level as we have seen.

To the downside, I think the 50 day EMA offers a significant amount of support that should be paid close attention to, right along with the $26 level. That is an area that I think continues to attract attention, followed by the 200 day EMA and the uptrend line as well. I urge you to notice how I did not have a set up for selling this market anytime soon. This is either a “buy on the dip” type of situation or a “by the breakout” one.

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