Silver markets have rallied just a bit during the trading session after initially gapping lower on Thursday. As we hang around the 50 day EMA, we are attracting a certain amount of attention and therefore I think it is likely to continue to be a market that is building up a case for a move to the upside. All things being equal, the market is going to continue to move based upon the idea of stimulus, which of course is going to be bigger than anybody ever anticipated. With Joe Biden talking about a potential $2 trillion worth of stimulus, one would assume that the US dollar would eventually suffer as a result, and of course the demand for silver in industrial use of this should continue to be strong.
SILVER Video 15.01.21
To the downside, I believe that the $25 level will continue to be important, and therefore I think that there will be plenty of buyers in that general vicinity. If we can break above the $26 level, it is likely that silver continues to go higher as well. Ultimately, the silver markets will probably go looking towards the $27 level, possibly even the $28 level. I have no interest in shorting silver, I do believe that longer-term it continues to go higher so on simply looking at dips as buying opportunities could be the way to go as well. Either way, I believe that this market will eventually find enough momentum to continue the previous uptrend that we had been in. Ultimately, I do think that we go back to the $30 handle.
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