Silver Weekly Price Forecast – Silver Markets Pull Back for the Week

Silver markets have pulled back just a bit during the course of the trading week, at the $25 level above still looms large. Because of this, I think we have a certain amount of consolidation and noise to work through, but there certainly should be quite a bit of support underneath as well. Looking at this market, I do believe that the $22 level underneath must be supportive, as it was the bottom of the overall longer-term range.

SILVER Video 01.11.21

On the other hand, if we were to break above the last couple of weeks highs, we could go towards the $26 level, possibly even the $28 level after that. All things being equal, silver will continue to move back and forth with the overall attitude of the markets, as the reopening trade will demand quite a bit of silver, just as the green initiative well. All things being equal, this is a market that has been consolidating between $22 on the bottom and the $28 level on the top. At this point, the market continues to be very noisy, but that is typical for silver. Keep your position size relatively modest, and you should be able to navigate the waters. All things being equal, this is a market that is in a range longer term and may not break out of it anytime soon.

However, if we were to break down below the $22 level, it is possible that we could go to the $20, and then much lower after that. The US dollar would of course be a major beneficiary in this type of scenario, as we continue to see the negative correlation play out.

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