Silver Price Forecast – Silver Markets Form Ugly Candle

Silver markets initially tried to rally during the trading session on Tuesday overnight, but the American traders came back and punished the market as there is a significant amount of fear out there, and of course the US dollar strengthened slightly during the trading session as well. That being said, there is still a significant amount of support near the $26 level, and of course the 50 day EMA which is racing towards the $25 level right now. With that being the case, I do like the idea of buying silver on dips, but I also recognize that the volatility is going to continue to be a major problem.

SILVER Video 09.09.20

To the upside, I see the $28 level as a potential area of resistance that extends to the $29 level. After that, we have the psychologically important and significant $30 level which is a significant barrier to overcome. Ultimately, this is a market that breaking above the $30 level will start to take off to the upside rather significantly. Historically speaking, the silver market tends to go looking towards the $50 level over the longer term. Granted, that is a very long term call, but I do think that it is very possible that we get something like that.

That being said, pay attention to the US dollar as it is a major contributor to where the silver markets go, so if it starts the weekend, that will be very good for silver. All of this being said, it does look as if the silver market should continue to go higher given enough time.

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