Silver Price Forecast – Silver Markets Give Up Early Gains

Silver markets have given up early gains during the trading session on Wednesday, as the US dollar strengthened again. That being said, silver is very well supported underneath, especially near the 200 day EMA and the $26 region. After that, we also have the uptrend line from the ascending triangle, so all of that comes into play in order to keep this market alive.

SILVER Video 08.07.21

To the upside, the 50 day EMA sits at the $26.76 level, and I do believe at this point in time if we can break above there then we will more than likely go looking to fill the gap above which runs all the way to the $27.75 region. Filling the gap is something that a lot of futures markets do eventually, and of course silver will be any different. If we can break above there, then the market is more than likely going to make another run towards the $30 region. That being said, it certainly does not look good right now, so we will probably have to grind our way to that area at best.

If we were to break down below the uptrend line, then it would be an extraordinarily negative turn of events, perhaps opening up the possibility of a severe break down. That breakdown could open up a move all the way down to the $20 level. That obviously would be a disastrous move for the overall uptrend, and therefore I would be very short of this market if we break down below the $24 level. In general, this is a market that I think is well supported but obviously we need to pay close attention to the action in front of us.

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