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Silver Price Forecast – Silver Markets Have Blowoff Top

By:
Christopher Lewis
Published: Jul 22, 2020, 15:53 UTC

Silver markets broke out again during the week, as we had reached towards the $23.25 level. However, we have pulled back rather drastically.

Silver

Silver markets broke higher during the trading session on Wednesday, reaching towards the $23.35 level before pulling back a bit. At this point in time, the market then pulled back rather significantly showing that we had gotten a bit ahead of ourselves. Just 48 hours before the market was barely above the $20 handle, which shows just how over-the-top the rally has gotten. That being said, there is a lot of information and what just happened, and therefore the silver market clearly has shown what it is going to do over the longer term based upon the last couple of days.

SILVER Video 23.07.20

At this point in time I like the idea of buying pullbacks as the market is obviously bullish, and a lot of short sellers in the silver markets have just gotten absolutely crushed. The last time we broke out like this the market ended up going rapidly to the upside, reaching towards the $50 level. I think we could go that far eventually, but that is obviously a longer-term call. In the intermediate term, I believe that pullbacks will continue to be buying opportunities and that is exactly what I am waiting for here.

At the very least I would like to see a pullback towards the $21 level, so I think you have a couple of days of simply waiting for price to get reasonable. Anybody who thinks that the market is going to continue to go straight up in the air like it has over the last couple of days, I refer you to the Bitcoin charts for a few years ago.

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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