Silver Weekly Price Forecast – Silver Markets Have Strong WeekSilver has rallied after initially trying to fall during the course of the week as retail traders have initiated a bit of a short squeeze in this market.
Silver markets have caught the attention of Wall Street Bets, forcing a bit of a short squeeze here as well. Whether or not they can actually short squeeze the silver market is a completely different question, but it certainly had been leaning to the upside for a while. We had a massive gap higher on Friday, with the market gaining about 7%. Looking at the chart, the $28 level is obvious resistance, so if we can break above there then it opens up the possibility of silver going to the $30 level.
SILVER Video 01.02.21
To the downside, the $26 level has been supportive and resistive in the past, so there should be a certain amount of “market memory” in that general vicinity. After that, then you start to talk about the $24 level which has been structurally supportive more than once.
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Keep in mind that the US dollar has an inverse correlation to silver most of the time, so it is worth paying attention to the US Dollar Index. If that rises, that could be bad for silver, but on the other hand if we start to see selling pressure against the greenback again, that naturally makes silver more attractive. Furthermore, silver has been rallying on the idea of stimulus going forward, as it should push a lot of industrial demand and of course people looking to preserve wealth going forward as inflation will become a concern. Nonetheless, we are in an uptrend and have recently had a nice pullback that it looks like people are willing to take advantage of. I have no interest in selling silver anytime soon.
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