Silver Weekly Price Forecast – Silver Markets Recover After Initial Selling Pressure
Silver markets have broken down a bit during the course of the trading week, reaching down towards the $23 level before recovering quite nicely. The candlestick of course ended up forming a bit of a hammer, which is obviously a very bullish sign. If we can break above the top of that hammer, then it is likely that we could go higher, perhaps breaking above the $25 level on the way to pick up even more momentum. When you look at this chart, the $22 level is where we have bounced from, and it has been a major support level from the longer-term standpoint.
SILVER Video 08.11.21
If we do break out to the upside, the suggested move could be to the $28 level. The $28 level of course is towards the top of the overall consolidation that we have been in for the last several years, so a move to that area would make a certain amount of sense. A lot of this will come down to the negative correlation when it comes to the US dollar, so pay close attention to the greenback. At this point in time, I think the market looks very strong, but we obviously have a significant amount of resistance.
If we were to break down below the bottom of the candlestick, then we will probably go looking towards the $22 level underneath, which I believe is a “floor in the market” going forward. Anything below there would be catastrophic for silver, but right now it does not look like we are going to make that move as the most recent action has certainly been slated to the upside.
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