Silver Price Daily Forecast – Silver Rallies Amid Increased Speculative Activity

Silver Video 29.01.21.

GameStop-Like Action In Shares Of Silver Miners Boosts Speculative Activity In Silver Markets

Silver has recently made an attempt to settle above the resistance at $27.50 as recent speculative upside in silver mining stocks boosted speculative activity in silver markets.

GameStop-inspired rally in shares of First Majectic Silver  and several other miners has pushed some traders to buy silver futures. As a result, silver rallied from $25.50 to $27.50 in just two trading sessions.

There was no similar activity in gold which continues to struggle with the major resistance level at the 50 EMA at $1865. If gold manages to settle above this level, it will gain upside momentum and head towards the $1900 level which will provide additional support to silver.

Not surprisingly, gold/silver ratio declined below yearly lows and is trying to settle below the 68 level. Gold/silver ratio has not visited this territory since 2017, and a move below 68 will likely push gold/silver ratio towards 67.50 which will be bullish for silver.

Meanwhile, the U.S. dollar is mostly flat against a broad basket of currencies. The U.S. Dollar Index has settled below 90.50. The nearest support level for the U.S. Dollar Index is located at 90.35. If the U.S. Dollar Index settles below this level, it will head towards the 90 level which will be bullish for silver and gold price today.

Technical Analysis

Silver got a boost from increased speculative activity in shares of silver miners. Currently, silver is trying to settle above the resistance at $27.20. If this attempt is successful, silver will get to another test of the resistance level at $27.50. If silver gets above this level, it will head towards the next resistance at $27.75.

On the support side, the nearest support level for silver is located at $27.00. A move below this level will push silver towards the support at $26.70. If silver declines below this level, it will head towards the next support at $26.30.

It should be noted that while RSI is in the moderate territory, the risks of a near-term pullback are significant as the current rally is inspired by speculative activity of retail traders on the stock market while gold markets have not supported the rally in silver markets.

For a look at all of today’s economic events, check out our economic calendar.