Silver Price Forecast – Silver Markets Slowing Momentum

Silver markets continue to see a lot of choppiness but overall upward momentum. At this point in time, the $28 level will more than likely cause a certain amount of resistance, as it is a large, round, psychologically significant figure, and an area where we have been selling off previously. At this point in time, I like the idea of buying pullbacks that we can take advantage of, especially if we can drop towards the $26 level. The 50 day EMA underneath could cause a significant amount of support as well, and it sits near the $25 level which of course is a large, round, psychologically significant figure.

SILVER Video 06.01.21

The market has continued to see buyers jump in and due to a weakening US dollar, and of course the idea of the overall reflation trade. Keep in mind that the silver market is highly influenced by not only a precious metal trade, but the idea of industrial demand. To the upside, if we break above the $20 level then I think we go looking towards the $30 level, which of course is a large, round, psychologically significant figure, and an area where we had sold off from previously.

At this point in time, I have no interest in shorting this market, at least not until we break down below the $22 level, which is obviously far from where we are right now. Building up a bit of a longer-term position in bits and pieces has been how I have been trading silver and I believe that will continue to be my overall play.

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