Silver Price Forecast – Silver Markets Showing Resiliency

Silver markets continue to be very noisy, as the market initially pulled back during the trading session on Friday, only to turn around and rally again. Ultimately, this is a market that I think will continue to see a lot of noise, and therefore you should pay attention to short-term dips as a potential buying opportunity, especially near the $26 level which of course is rather crucial when it comes to support. That being said, I like the idea of picking up value as the silver market continues to show a lot of volatility, but it of course is moving in an environment that most certainly has a lot of fear out there which could drive money into precious metals.

SILVER Video 14.09.20

Ultimately, the US dollar will dictate what happens next, as a strengthening US dollar is typically bad for the silver markets, and a weakening US dollar gives silver markets a bit of a boost. We are in an uptrend and it certainly looks as if we are compressing. Typically, when a market compresses like this we will eventually see expansion, as markets cannot sit still forever. All things being equal, the market has more of an upward bias, because even if we break down below the $26 level, the 50 day EMA underneath will also attract a lot of attention and have people looking to go long. A breakdown below that level could have a bigger implications but right now it does not look like we have that going on, and therefore I remain bullish, but I also recognize that it will be noisy.

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