Silver Price Forecast – Silver Markets Pull Back From Resistance

Silver markets got a bit of a boost over the last 36 hours or so in preparation for the Jerome Powell speech. After the Chairman did little to get the markets excited, we have completely underwhelmed that move. Ultimately, this is a market that still has plenty of support underneath, starting at the $26 level. I think at that point the $25 level is massive support as well, not only from a structural standpoint but also from a psychological one. Underneath there, the $24 level is massive support, and of course we have the 50 day EMA reaching towards that same level.

SILVER Video 28.08.20

With that being said, I like the idea of buying dips in silver, because I do believe that we go higher over the longer term. It could be choppy for a while, and the $20 level has certainly offered a lot of resistance. If we can break above there, then we could go looking towards the $30 level above, which has offered the recent high. Breaking above that opens up the possibility of a move towards the $50 level, based upon historical precedents.

I do not have any interest in shorting this market, and I believe that if we break down below the 50 day EMA it could cause a bit of a flush in this market, but I would be very interested in buying closer to the $20 level, so with that I do not even have a scenario that am looking to short the metal. That does not mean that it cannot change, just that it makes no fundamental sense at this point in time and it is much easier to trade with the longer-term fundies.

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