Silver Price Forecast – Silver Markets Pierce Major Resistance

Silver markets have broken to the upside during the trading session on Thursday to pierce the $26 level yet again. That is an area that has been resistive previously, so at this point in time it is likely that we will continue to see buyers on dips as silver has been so bullish during the day. Ultimately, the 50 day EMA has offered a significant amount of support and ultimately it looks as if we will go looking towards the $28 level above. Short-term pullbacks continue to offer value on short-term charts, but keep in mind that the silver contract can be very large and therefore you need to be very cautious with your trading size.

SILVER Video 29.01.21

To the downside, the $24 level should be supportive as we have seen buyers there previously, and therefore I think it is only a matter of time before market participants take advantage of short-term dips down to that level as well. The 200 day EMA sits at the $23 level, and therefore I just do not have an opportunity to short this market anytime soon and I do think that value hunting will continue to be the best way forward as we have seen so much in the way of momentum jump back into the market. The US dollar of course is on its back foot but well supported underneath on the US Dollar Index, so I think the upside is somewhat limited in the short term, but I do think that the trend is trying to reassert itself. I would anticipate a lot of choppiness in the short term, so be careful by all means.

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