Silver Price Forecast – Silver Markets Dancing Around Top of ConsolidationSilver markets have shown a bit of strength during the trading session on Thursday, as we are trading in thin holiday trading.
Silver markets have rallied a bit, but at this point in time it looks likely that we will continue to find short-term pullbacks as a buying opportunity. The $26 level has been a bit of a magnet for price, so it makes quite a bit of sense that we continue to undulate around it. To the upside, believe that the market is likely to go looking towards the $28 level given enough time. The market had sold off from the $28 level rather significantly, so it is not a huge surprise that we have failed at that level.
SILVER Video 28.12.20
If we can break above the $20 level, then we could go looking towards the $30 level after that. The $30 level of course is a large, round, psychologically significant figure and an area that has been important more than once. To the downside, there is the 50 day EMA down at the $24.65 level, so that is an area that could be paying attention to as well. All things being equal, I think that the lack of volume will continue to be the biggest issue here, but I think as long as we continue to see plenty of stimulus issues, then that will course work against the value of the US dollar. That of course will help lift the value of silver due to the fact that it is negatively correlated to the greenback.
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At this point in time, I have no interest in shorting the silver market, because quite frankly it is very strong. It will be choppy, but eventually it will show signs of bullish pressure. All things being equal, buying on the dips is by far the best way to trade this market.
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