Silver Price Forecast – Silver Markets See Short Covering Into the Weekend

Silver markets have rallied a bit during the course of the trading session on Friday, perhaps in a bit of short covering as the market had been beaten down so severely. The US dollar did soften up just a bit, so that also could have a little bit to say about where we go next as well, but ultimately, I think this is a market that still has plenty of resistance above that will cause major issues. That being the case, I am paying close attention to the candlestick from the Monday session, because if we cannot break above the top of that level, I would not be interested in trying to get long.

SILVER Video 16.08.21

Breaking above the top of the candlestick could open up the possibility of a move towards the 200 day EMA, where we are starting to see a bit of a potential “death cross” form, which could send this market much lower. On the other hand, if we turn around a break down below the lows of the Monday candlestick, which means that we will overtake the $22 level, and then of course the $20 level could come into the picture as silver would get hammered.

Pay close attention to the US dollar, as it will have a major influence on where we go next and paying attention to the 10 year note might make the most sense, because quite frankly if interest rates continue to rally, that would help silver selloff because it is cheaper to simply hold paper than it is to buy and store metal.

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