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Silver Price Forecast – Silver Markets Gap Higher

By:
Christopher Lewis
Published: Feb 1, 2021, 17:45 UTC

Silver markets gapped higher, breaking above the $28 level on the open for Monday. A lot of the “Wall Street Bets” momentum is going into this market.

Silver

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Silver is going to be getting a lot of attention over the next couple of weeks, as the retail trader starts to plow into it in order to try to force a short squeeze. That being said, the silver market is a completely different beast than some overly shorted stock. Causing a short squeeze in the Comex markets is not impossible, but it takes a lot more effort. It will be interesting to see whether or not the retail traders can make this happen, and clearly the line in the sand is at the $30 level. If we were to get a close above the $30 level on a daily chart, then you could be talking about a major move. Until then, I think there is probably a significant danger of this market falling right back down on these kids.

SILVER Video 02.02.21

Ultimately, this is a market that I think will eventually break out to the upside but right now it is far too ahead of itself. The gap and then gaining 10% in one day is a nice attempt, but there is a lot of work to be done in order to make this thing go a lot higher in the short term. I think a pullback to try to fill the gap makes quite a bit of sense and I certainly think that there would be a lot of buyers down there. However, if we do get a daily close above the $30 level that opens up a move to much higher levels, perhaps even as high as $50 over the longer term.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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