Silver Weekly Price Forecast – Silver Continues to Struggle With Break Out

Silver markets have initially rallied during the course of the week but gave back some of the gains as the $28 level continues to cause major resistance. Silver markets have seen quite a bit of resistance just above to extend towards the $30 level. The $30 level above is a large, round, psychologically significant figure that will attract a lot of attention. If we were to break above there then it is likely that we can continue to go towards the $50 level, based upon the longer-term chart. After all, we have seen that happen a couple of times, but ultimately this is a scenario where we just do not have enough momentum to get going forward.

SILVER

To the downside, the $26 level offers quite a bit of support, just as the uptrend line comes into play as well. All things been equal, this is a market that I think will continue to find value hunters as we have formed a massive ascending triangle, and that typically means that there is support underneath that comes into play. With this being the case, I think what we are looking at is a scenario where you continue to buy on the dips until we finally get that squeeze to the upside.

Once we do break the $30 level, it is likely that we could see a flood of money coming into this market based upon the following US dollar and of course the reopening trade as the demand for silver will pick up due to its industrial use case. Regardless, I have no interest in selling this market anytime soon and I do think that we continue to see a lot of upward mobility.