Silver Price Forecast – Silver Markets Gap HigherSilver 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 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.
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