Silver Price Forecast – Silver Markets Looking to Build Support

Silver markets initially fell during the trading session on Monday to show signs of hesitation, but then took off again to show that perhaps the $23 level will continue to be support. The shape of the candlestick is of course very supportive, and the fact that it is a continuation of what we had seen during the session on Friday. The market of course is a bit oversold, so even if we do bounce from here, I might be hesitant to get too big into a position at this point.

SILVER Video 17.08.21

If we break down, the $23 level should offer a significant amount of support, but if we were to break down below there then the market probably goes back to the lows to test the bottom again. After that, then the market will almost certainly go looking towards the $20 level after that. However, if we can take out the $24 level that would be a good sign and could send this market looking towards the $25 level. That is an area that features the 200 day EMA and the 50 day EMA, which are getting ready to cross and form the “death cross.” In general, if the markets were to break above there, then it would be an extraordinarily bullish sign and send silver much higher.

I do not necessarily expect to see that happen, but a little bit of a recovery after that massive selloff should not be out of the question. Because of this, I think we probably go higher in the short term, but I would not get married to a position at this point in time.

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