Silver Price Forecast – Silver Markets Dropped to Fill Gap

Silver markets have fallen a bit during the trading session on Thursday to reach down towards the gap and fill it. We have bounced a bit from there as one would expect, and we also have the 50 day EMA underneath offering a bit of support. The question now is whether or not we can bounced significantly? The US dollar is starting to show signs of strength again, and that will have a major influence on where we go next. Ultimately, I think that this is a market that will continue to look overall to the upside, but this is a market that needs to see stimulus or some type of boost in industrial demand to send silver higher.

SILVER Video 05.02.21

We have recently seen a “retail based short squeeze” attempt on this market, and that is why we reached the $30 level again. Quite frankly, they do not understand how the market works so it is not a huge surprise that they get wiped out. Whether or not we can go higher is a completely different question, but we certainly will not be doing it at 8% a day. I do like the idea of buying silver for a longer-term move, but I would do so with a low leverage position, because quite frankly it is going to take quite a bit of patience to see this position through. Furthermore, there are multiple support levels underneath that we may need to revisit first. Pay attention to the US dollar, because it is working against the silver markets quite drastically, so I think at this point it is likely that you will have to pay attention to both markets and see whether or not the negative correlation abates.

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