Silver Price Forecast – Silver Markets Scream Higher

Silver markets have shot higher during the trading session on Tuesday as we have seen the $25 level offer massive resistance. What might be more impressive though is the fact that we are broken above the top of an inverted hammer, which is a bullish sign in and of itself. We are approaching the 50 day EMA, so that has a part of play, but if we break above there then it is very likely that we will go looking towards the $27 level, followed by the $28 level. Furthermore, we could even go as high as the $30 level and simply be testing the most recent highs.

SILVER Video 10.03.21

Historically speaking, if we can break above the $30 level then silver has a real shot at reaching towards $50. $50 has been a target multiple times, and the $30 level seems to be the “gateway to those prices.” To the downside, I think that the 200 day EMA sitting at the $24 level makes it rather formidable, so I do not anticipate silver to break down below there unless of course 10 year yields continue to scream to the upside like we have seen.

The fact that the market is trying to close towards the top of the candlestick is of course a very crucial to pay attention to as well, as it suggests that we may get some type of follow-through. I am not quite ready to suggest that perhaps precious metals are suddenly going to be very bullish, but clearly silver has been leading gold for some time, as it also has a bit of a tailwind due to the idea of the economic recovery demanding more from industry as far as supply is concerned.

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