Silver markets have formed a rather bullish candlestick for the week, showing signs of life again near the $23 level. At this point, I believe it is only a matter of time before we go looking towards the $26 level, perhaps followed by the $27 level. We had a nasty weekly candlestick previously, but we are most certainly in a major uptrend, based upon the fact that the central banks around the world are continuing to stimulate as much as they can. This tends to make people dump currency and go looking towards hard assets such as precious metals.
SILVER Video 12.10.20
Silver markets have plenty of support underneath, and quite frankly it is not until we break down below the $20 level that I would be concerned about the silver market itself. With that being said, I think that we are looking at a high likelihood of a “buy the dips mentality” going forward, so this point I think that a lot of people will look towards short-term charts in order to make their decisions. The market pulling back the way it had was necessary due to the fact that we had gotten a bit parabolic, which of course cannot be sustained forever.
The absolute “floor the market” is the $20 level, and quite frankly I cannot imagine a scenario where we get below that level anytime soon. In fact, we might be looking at fresh highs in the next few months. Obviously, there is no way to short precious metals at this point.
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