Silver Price Forecast – Silver Continues to Look Supported

Silver Price Forecast Video for 26-01-2024

Silver Markets Technical Analysis

Silver rallied a bit during the trading session on Thursday. And it looks to me like we are going to continue to see a lot of upward trajectory due to the fact that if for no other reason, we are near the bottom of the larger consolidation area. In other words, silver looks a bit “cheap” at this point in time.

For example, the $22 level underneath is a major support level, while the $26 level above is a major resistance barrier. At this point in time, I do think that short-term pullbacks offer buying opportunity. This is a market as long as we stay above the $22 level, should be thought of as one that is a value play.

Silver will of course be very sensitive to interest rates in the United States and other places as well. And it could be sniffing out the idea that perhaps central banks will have to start cutting rates. But it’s also very sensitive to the US dollar, as it has a negative correlation to both of those. So, pay attention to 10-year yields, the US dollar, and you can get a general idea of where silver will go.

There’s also industrial demand that comes into the picture as silver is much more industrial than gold. So, although it does tend to follow the same trajectory over time, and of course it is considered to be a precious metal, it is also considered to be an industrial metal as well. And that, of course, has its own influence. Ultimately, I just think that we are cheap when you look at the overall range. So, a pullback here should offer a nice buying opportunity.

If we were to break down below the crucial $22 support level, then it opens up a move down to the $21 level, which of course is support as well, as it was a swing low when we got that slight breakout only to return back into the same consolidation area we are in presently. Ultimately, I think it is more or less a situation where it is “steady as she goes.”

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