Silver Price Forecast – Silver Markets Give Back Early Gains

Silver markets initially tried to rally during the trading session on Tuesday but continues to see resistance near the $28 level. By pulling back the way we have, it suggests that we are going to continue to see trouble around the $28 level. If we were to break above that level, obviously that would be a very bullish sign and send this market towards the $30 level. At this point, the market is probably going to continue to build up momentum in order to try to break higher, but I think that it is going to take quite a bit of momentum building in order to make it actually happen.

SILVER Video 10.02.21

To the downside, the market is very likely to see the 50 day EMA offer a bit of support. At this point, I think that a pullback probably attracts a certain amount of support, and I think that given enough time the buyers will return in that general vicinity. Alternately, if we were to break above the $20 level it is likely that we would take out to the upside rather significantly. At this point, I think the one thing you can probably count on is a lot of noisy trading, and therefore I think what we probably need to do more than anything else is keep our position size relatively small initially. Once the market starts to break to the upside, then you could see a little bit more certainty that you can trade into, but right now I think we have a lot of noise based upon questions about the stimulus package in the United States and how big it is going to be.

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