Silver Weekly Price Forecast – Silver Markets Have Strong Week

Silver markets are rallying significantly during the course of the week, reaching towards the $26 level. That is an area that previously had been supported, and now looks likely to show a lot of resistance. Silver is obviously very sensitive to the US dollar, which is a bit stretched to the downside. I think we are about to see more volatility, not less. Unfortunately, the US elections are continuing to cause a lot of jitters, because it is likely that we will see recounts and that creates even more uncertainty.

SILVER Video 09.11.20

Silver may move higher if we see the US dollar get hammered, but the stimulus package will be smaller than originally thought. That being said, the market is likely to see the $26 level as resistance, followed by the $27 level. That being said, I do like the idea of buying silver more than selling it, so short-term pullbacks might be nice buying opportunities, but you do not necessarily use the weekly chart to do that. However, top-down analysis does suggest that you should be paying attention to this chart regardless.

The 38.2% Fibonacci retracement level has held as support, so I do think this means that we will probably see an explosive move higher eventually. However, it may not be due to stimulus, but more or less to the fact that central mix around the world are going to be loosening monetary policy and therefore fiat currency in general is going to be very soft. The size of the candlestick is somewhat impressive, but it is worth noting that we stopped right at the first signs of significant resistance.

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