Silver Price Forecast – Silver Markets Continue to Look Sick

Silver markets have initially gapped higher to kick off the trading session on Tuesday but then turned around to show signs of exhaustion. Ultimately, the $25 level underneath has shown itself to be important from a psychological and structural standpoint, + we also have an uptrend line that sits right around in the same area. However, we have broken below the 200 day EMA and decidedly so. At this point, it looks very likely that we are going to continue to go lower, but we obviously have a significant amount of support to chew through first.

SILVER Video 21.07.21

The US dollar has been strengthening as well, so that of course works against the value of precious metals also. At this point in time, it is worth paying close attention to this market, because if we do break through all of the support, it could be a bit like a “trapdoor” to much lower pricing. Looking at this chart, it has a lot of negativity built into it, but it is still technically in an ascending triangle, so I believe that we are at a major inflection point. For what it is worth, the US dollar has been skyrocketing against a lot of different things, so shooting higher here would not be a huge surprise.

To the upside, we would need to wipe out the losses from Monday at the very least to start thinking about a bullish trade, but even then, I see a significant amount of resistance that could come back into play, extending all the way to the 50 day EMA. Breaking above the 50 day EMA allows the market to go looking towards the gap above.

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