Silver’s profile is improving considerably as we head into the first trading days of 2021. Our silver forecast for 2021 was bullish, but we had pretty low expectations for the first part of 2021. We believe the market is still in line with our prediction, and opening 2021 on a strong note is a prerequisite to avoid a breakdown (which might result in a bad year). Overall, our 2021 forecast for global market is bullish but the recent rally in most markets except precious metals was too aggressive so we expect a slow start of the year.
When it comes to silver, it is increasingly clear that the market is choosing for a nice consolidation. That’s great, for the medium term.
What we observe on silver’s chart is this nice balanced cup reversal. Moreover, its structure is pretty constructive as the 2 mini sell offs (end of October and end of November) both found solid support at the median line of the 2020 uptrend.
We keep on iterating that the 26 USD level is a pivotal level.
For now, benefit of the doubt of a bullish outcome, even though we don’t know exactly how much more consolidation is required in this market before moving strongly higher past 30 USD (our 2021 target).
