Silver Price Forecast – Silver Pressing Resistance Barrier

Silver markets have rallied a bit during the course of the trading session on Tuesday as we go looking towards the $24 level. The $24 level of course is an area that has offered resistance as of late, and breaking above there would attract a certain amount of attention. In fact, I believe at that point we would anticipate a move towards the $25 next in the silver market. The size of the candlestick for the previous session was of course very bullish, and a bit of a bounce after that massive selloff would not be out of the question.

SILVER Video 25.08.21

It is worth noting that we had recently formed the “death cross” in this market, which typically means longer-term selling pressure, and of course longer-term CTAs will start to focus on the downside as well. All things being equal, if we do break above the $25 level, it would also have the market clearing the 50 day EMA, so that would be very bullish. I would almost certainly coincide with a shrinking US dollar, which is a very real possibility as Jackson Hole headlines will probably move the greenback over the next couple of days.

I think at this point, we are simply seeing a bit of short covering due to the fact that nobody really knows for sure what is about to happen. It does appear that a lot of traders are banking on Jerome Powell doing absolutely nothing to suggest any type of tapering, which of course would be negative for the greenback. However, if he does in fact start tapering or suggest that the Federal Reserve is going to by the end of the year, that will be very bearish for silver.

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