Silver Price Forecast – Silver Markets Pull Back From Big Figure

Silver markets have fallen a bit during the course of the trading session on Tuesday as we continue to see quite a bit of noise in general. That being said, I think it is only a matter of time before we see another push to the upside and perhaps an attempt on the $28 level. The $20 level is a large, round, psychologically significant barrier that has come into play a couple of times in the past, and the fact that we formed a shooting star during the session on Monday illustrates just how important it is.

SILVER Video 12.05.21

If we were to break above the candlestick from Monday, then I believe that the market is likely to go looking towards the $30 level above, which of course is a big figure that a lot of people will be paying close attention to. Breaking above that opens up the possibility of silver moving all the way to the $50 level, or at least close to it as we have a couple of times in the past.

In the short term, I believe that the 50 day EMA should continue to offer a little bit of support, as it has been followed rather closely over the last several weeks. Ultimately, the $26 level underneath that indicator would also provide a little bit of support so I think it is only a matter of time before buyers would jump in. In order for silver to fall apart you would have to see a complete demolition of the reopening and industrial narrative, with the US dollar rising rather rapidly. I do not see that happening for any significant amount of time.

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