Silver Price Forecast – Silver Markets Finding Buyers on Dips

Silver markets have initially fallen during the trading session on Monday, but then has seen buyers come back in on the pullback, perhaps looking for value. Ultimately, this is a market that looks likely to see a continued push to the upside, especially as long as the US dollar is softening in general. With that being the case, I do believe that the silver markets will go looking towards the $26 level, an area that has been significant resistance previously. With that being the case, I think that we may need to take a couple of attempts to finally break through there, but one silver finally does, it should take off to the upside and go looking towards the $29 level, followed by the $30 level.

SILVER Video 08.12.20

I do believe that there is plenty of support underneath the market right now to continue to push this market higher, especially at the $22 level where we see the 200 day EMA in the bottom of the recent consolidation. With that being the case, I think it is only a matter of time before dips offer enough value that people are willing to jump on them. Alternately, if we do break above that $26 level, I expect that the breakout will pick up momentum at that point in time.

Pay attention to the US Dollar Index, as it is negatively correlated to this market, and of course the US dollar continues to get hit rather hard. As long as that is going to be the case, there will be demand for precious metals in general. I have no interest in shorting silver anytime soon.

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