Silver Price Forecast – Silver Markets RecoverSilver markets initially sold off on Thursday but then turned around to show signs of life again. The US dollar has also sold off too.
Silver markets initially fell during the trading session on Thursday but found enough support underneath the turn around and show signs of life again. By doing so, it looks as if we are going to finish the day with some type of hammer, which of course is a very bullish sign as well. The $28 level above causes a bit of resistance, so if we can break above there then it could open up a bigger move. That being said, the main driver of course is going to be the US dollar, which did get hit somewhat during the trading session on Thursday.
SILVER Video 04.09.20
Friday features the Non-Farm Payroll numbers and that will certainly move the US dollar. If the greenback weekends during the day, that should be enough to send silver back towards the top. I believe at this point we are trying to form some type of ascending triangle, so breaking above the $29 level would threaten the $30 level, which kicks off the next major leg higher. I believe at this point in time we will have plenty of reasons to see this market go higher, not only the US dollar but the fact that the Federal Reserve is going to keep its foot on the accelerator when it comes to the economy.
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This debases currencies, and therefore people will chase commodities in general, and “hard assets” such as gold and silver. I believe at this point the $26 level is essentially the “floor” in the market, and therefore I continue to look at this as a “buy on the dips” type of market.
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