Silver Price Forecast – Silver Markets Continue to Stall

Silver markets initially tried to rally during the trading session on Friday but ran into far too much resistance to continue going higher. By forming the candlestick that we have, essentially a “gravestone doji”, it suggests that we are probably about due for a pullback. The massive candlestick on Tuesday shows plenty of bullish pressure, and I think that we may need to at the very least digest the gains that we had. Ultimately, this is a market that I think continues to see buyers on dips and that is probably the play going forward. The $22 level should be rather important, as it was the bottom of the most recent consolidation area.

SILVER Video 07.12.20

As you can see, we bounce from the 200 day EMA, after forming a hammer on Monday. To the upside I believe that the market goes looking towards the $26 level, which is the top of the rectangle that I have seen. Looking at this chart, I think that if we were to break above there, then it opens up the possibility of a move to the $28 level. All things being equal, this is a market that I think continues to see buyers on dips and I think that the longer-term trade is still to pick up value as it occurs and hold on to silver for the longer-term move. Looking at this chart, it appears that we are trying to form some type of basing pattern, and therefore I think that we are building up for a bigger move. The $30 level course is a major barrier, but it should act as a magnet longer-term as central banks around the world continue to flood the markets with liquidity.

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