Silver Price Forecast – Silver Markets Trying to Build Base

Silver markets have gone back and forth during the trading session on Wednesday, as we have tested the $24 level for support, and the 50 day EMA as resistance. At this point time, the candlestick for the trading session essentially sets up a “binary trade.” In other words, if we break above the top of it would be a buying opportunity as we would probably go looking towards the $26 level after that. On the other hand, if we break down below the bottom of the candlestick from Monday, then it opens up the possibility of a move down to the $22.75 level.

SILVER Video 12.11.20

Underneath all of that, there is the 200 day EMA that sits just below the $22 level. That is a long term indicator the people pay attention to, and obviously there will be a lot of interest in that area as well. Looking at the longer-term outlook for silver, the demand should still be there, due to the fact that central banks around the world are starting to flood the markets with liquidity and of course cheap money. If that is going to be the case, then hard assets get a bit of a bid longer term. I like the idea of buying silver on dips, as it offers value, and we could go much higher. If we can break above the $26 level, that opens up the possibility to the $20 level above, which is an intermediate target for me, but I would not be surprised at all to see a little bit of base building going forward as well.

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