Silver Price Forecast – Silver Markets Recover Ever so Slightly

Silver markets have rallied a bit during the trading session on Wednesday as the 200 day EMA has held. That of course is a major indicator that a lot of people will pay close attention to, so it does make sense that we have seen a bit of consolidation in this area. Furthermore, we also have the jobs number coming out on Friday, so that would have a certain amount of influence on the markets as well. That being said, if we break down below the $25 level, which by extension would be a breakdown below the 200 day EMA. Because of this, the trend would essentially be broken, and then silver could go crashing towards the $20 level.

SILVER Video 01.07.21

On the other hand, if we can break above the $26.50 level, it is possible that we could go looking to fill the gap above which could send silver all the way up to the $27.75 level. That being said, keep in mind that the US dollar has a certain amount of influence, and of course the industrial demand could come into play as well. That being said, the market is likely to continue to see a lot of noisy behavior out there, and therefore I think you need to be cautious about your position size until we get some type of confirmation as to which direction we are heading for a bigger move.

I do favor the upside longer term, but obviously it has shown itself to be rather difficult to make that move. Because of this, I much more likely to get aggressive to the upside if we can break out above the recent consolidation area.

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