Silver Price Forecast – Silver Markets Pull Back From Big Figure

Silver markets have initially rallied a bit during the trading session on Wednesday but gave back the gains near the $20 level. This is an area where we have seen a bit of resistance in the past, so it is not a huge surprise to see a pullback. Furthermore, we might be just a little bit overextended, but I do think that the uptrend continues. Quite frankly, looking at this candlestick tells me that we might get a short-term pullback that offers value. The $26 level underneath should be significant support, not only there, but also the 50 day EMA which is turning higher and has broken above the $25 level.

SILVER Video 07.01.21

Now that looks like the Senate is going to flip over to Democratically controlled, it is very likely that the US dollar will be eviscerated over the next several months, so it does make sense that precious metals in general will continue to go higher so I am a buyer of dips at this point, recognizing that they offer value in what should be a longer-term run towards the $30 level, and then beyond that. Furthermore, there should be a ton of stimulus coming out the United States now, meaning that the demand for silver from an industrial standpoint could pick up as well.

I have no interest in shorting this market, at least not until we break down below the 200 day EMA, something that does not look very likely to happen anytime soon, so having said that I do like looking for value and adding little bits and pieces as we move along, recognizing that we could have a very big move over the longer term.

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