Silver Weekly Price Forecast: Silver Testing Top of Consolidation Area

Silver markets had a very strong week, breaking towards the $26 level, an area that is an obvious resistance barrier. Furthermore, the market looks as if it is right for a bigger move, especially if we get stimulus coming out the United States. That being said, I think that the market is eventually going to make a bigger move, perhaps towards the $20 level, maybe even the $30 level. I have no interest in trying to short this market, because I believe that there is so much demand just below that it is only a matter of time before people get involved again.

SILVER Video 21.12.20

To the downside, the $22 level is a significant support area, as on the daily chart it features the 200 day EMA. Furthermore, the 50 week EMA is starting to approach that same area so I think it is only a matter of time before buyers would jump into the market on a dip to that area. Regardless, it certainly looks as if silver is ready to kick off for a bigger move, and this last week would have done a lot for confidence. Now that we are getting close to the Christmas holiday, liquidity will become an issue so I would not read too much into the market moves over the next week or two, but clearly, we are trying to get to the upside given enough time.

I believe that ultimately, we are looking at a scenario that is a “one-way trade”, but you may get the occasional dip to offer a little bit of value in what has been a very strong and reliable move over the last couple of weeks.

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