Silver Price Forecast – Silver Continue to See Resistance Above in Bullish Trend

Silver markets have initially rallied during the trading session on Tuesday to reach towards the $28.75 level before pulling back. At this point in time, the $28 level is considered a major point of contention, and now is even starting to offer a little bit of support. Underneath, there is a significant amount of support at the $27.50 level as well, and of course the 50 day EMA which is rapidly approaching and rising from there. To the upside, the $30 level continues to be a massive barrier, but historically speaking if we can break above the $30 level, it is very likely that we go looking towards the $50 level over the longer term, as we have seen multiple times during the past several decades.

SILVER Video 02.06.21

Looking at this chart, I think that we are trying to build up the necessary momentum to break out, but at this point we do not have the strength. All things been equal, I think that buying the dips will probably come into the picture to pick things up, and I do believe that longer-term traders are trying to pay attention to the overall ascending triangle that is being built up.

If we continue to see the “inflation trade” and of course the “reopening trade”, then I do believe that silver has a chance to break out for a huge move. Otherwise, this is a market that probably is going to eventually see some type of impulsive candlestick to shake everyone out. Pay attention to the US dollar, because if it continues to fall that should also help silver markets in the usual negative correlation.

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