Silver Weekly Price Forecast – Silver Forms Neutral Candlestick

Silver markets continue to move back and forth with the US dollar, and of course the hopes or perhaps despair of a possible stimulus coming out of the United States. Ultimately, this is a market that continues to see a lot of volatility, but I think we are trying to digest the recent gains right around the 38.2% Fibonacci retracement level. The $22 level underneath should be massive support, especially as the 50 week EMA is starting to approach that level. I suspect that we will get a short-term pullback, followed by traders jumping into pick up “cheap silver.”

SILVER Video 14.12.20

Longer-term, central banks around the world continue to flood the markets with liquidity, and therefore it is likely that we will continue to see hard assets gain strength. This is especially true in the precious metals markets, because it is a great way to protect wealth over the longer term. As you can see, the market had shot straight up in the air earlier this year from $12-$30, and now we have been simply digesting those gains. Yes, it has been very choppy over the last couple of months, but at the end of the day it is very likely that we need to see some type of resolution to the stimulus talks in order to continue going higher.

The $26 level above being broken to the upside kicks off the next move towards the $20 level, and that of course the $30 level that was mentioned previously. On the other hand, if we were to break down below the $22 level, it opens up the possibility of a move down towards the $20 level.

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