Silver Price Forecast – Silver Markets Continue to Show Volatility

Silver markets have fallen a bit during the course of the trading session to show signs of weakness, but we have been seeing the uptrend line underneath offer plenty of support, especially near the $25 level. With that being the case, the market is likely to continue to see this area as potential support, and therefore it is not a huge surprise to see that we have turned around to go towards the 200 day EMA yet again. As the candlestick looks now, it appears that we have a shooting star followed by a hammer, which typically means that we are simply going to consolidate. This makes even more sense considering that the jobs report comes out Friday morning, so therefore the fact that the US dollar would stabilize should not be a huge surprise.

SILVER Video 06.08.21

To the upside, the 50 day EMA should offer a significant amount of resistance, as it sits right at the $26 level. Breaking above that level opens up the possibility of the market to go looking towards the $27 level. Furthermore, if we break above there then we could go looking towards the $28 level which is basically where the top of the gap. With that being said, I think the next 24 hours will be very choppy, but I do not expect to see any real resolution to this market, but we have to keep close attention on the chart as we have several times in the past where the market has shown significant volatility. Silver tends to be very wild, so I would keep my position small until you get some type of confirmation.

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