Silver Price Forecast – Silver Markets Quiet on FridaySilver markets have gone back and forth on Friday to continue the stabilization that is so desperately needed after the massive selloff.
Silver markets have gone back and forth during the trading session on Friday as we continue to stabilize. The $27 level looks to be offering short-term support, and of course the $26 level is also supportive as it was not only the scene of a gap and a retest, but it is also the scene of the 50 day EMA. With that being the case, I think that short-term pullbacks will continue to be bought into, especially as the silver markets are going to be boosted by the idea of stimulus coming out the United States not only shrinking the US dollar but driving up industrial demand for metals such as silver.
SILVER Video 15.02.21
To the upside, the $30 level would be a major barrier to break above, and if we were to do so, the market is likely to eventually go to the $50 level as it has a couple of times in the past. All things being equal, this is a market that I do think eventually make that move, especially if we see any hope of inflation or massive stimulus. Ultimately, this is a market that I think will try to make that move eventually, but we are going to get there right away. This is more of a grind higher, which was only interrupted by the retail attempted short squeeze of silver that made a lot of noise, but ultimately did not change much. Buying on the dips continues to be an opportunity for longer-term traders, but I would do so in small increments to build up a bigger position over the longer term. I have no interest in shorting silver anytime soon.
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