Silver Weekly Price Forecast – Silver Markets Have Wild Ride

Silver markets have been somewhat out of control during the course of the week as retail traders tried to squeeze it higher by forcing short the cover right off the bat on Monday. The $30 level has seen a significant amount of selling pressure though, and we have completely wiped that move out. That being said, we are still sitting on top a fairly significant support so I would be very cautious about getting to aggressive to the downside. I think that we probably have a little bit of a pullback coming, but it still fits in quite nicely with the narrative of the market trying to break out to the upside. With that being the case, I do like the idea of buying on dips, but I would need to see a little bit more of a substantial support of candle sits closer to the $26 level.

SILVER Video 08.02.21

Longer-term, silver markets are hoping for more of a reflation trade going forward, and that of course would help the idea of silver going higher. After all, silver has a major industrial component built into it, so I think that is essentially what we are watching here, the idea of stimulus pushing it higher. The retail trader simply did not have enough momentum to make it happen, and that should not be a huge surprise. With that being the case, I think what we are looking at here is a “buy on the dips” scenario still. This does not necessarily suggest that we should be aggressive, rather that we should build a position as silver does tend to be very volatile and dangerous if you pay any attention to whatsoever.

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