Silver Price Forecast – Silver Markets Find Support
Silver markets initially pulled back significantly during the trading session on Monday but has bounced just a significantly from the $24 level. The $24 level has been supported in the past, so it is not a huge surprise to see a little bit of a hammer here. I think silver continues to move based upon the idea of stimulus, not only from the United States but multiple central banks around the world. The hammer of course is a bullish sign, but at the end of the day there is a lot of resistance above at the $26 level, suggesting that we are in a tightening type of market. If we can break above the $26 level, the market is likely to go looking towards the $28 level.
SILVER Video 19.01.21
To the downside, if we break down below the bottom of the candlestick for the trading session on Monday, then we could go looking towards the 200 day EMA which is close to the $22.90 level. That is an area that should be paid close attention to from a longer-term standpoint, and ultimately, I believe that we will find buyers given enough time. Because of this, I would be cautious about jumping in with both feet, but the overall uptrend still seems to be trying to assert itself. The volatility will continue to chop this market back and forth, but I still believe in the overall upward mobility. I would not read too much into the candlestick for the day yet though, because it was Martin Luther King Day in the United States, so a significant amount of liquidity was not even involved in the market.
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