Silver Price Forecast – Silver Continues to Look Bullish Overall

Christopher Lewis
Published: Mar 4, 2024, 14:13 GMT+00:00

The silver market was extraordinarily bullish after initially gapping lower to kick off the Monday session, only to turn around and recapture the highs from the Friday session rather early.

In this article:

Silver Markets Technical Analysis

I am taking a look at the silver market and as you can see, we initially gapped quite a bit lower to kick off the trading session on Monday, but then just turned around to show signs of life and the market just took off at this point we continue to consolidate between the $22 level on the bottom and the $23.50 level on the top. Even though we have had such a massive move higher, I don’t necessarily think that anything has changed.

With this setup being the way it is, I am paying special attention to the $23.50 level, which is an area that I think if we were to break above it, it’s really going to take on to the $24.50 level. That being said, I am a bit cautious at this point about getting overly aggressive because I’ve seen this market fight right around here before and it always seems to want to pull back, but it does offer nice value. In that scenario, it’s just simply buy on the dip until we finally take off.

Once we do, the $24.50 level then becomes targeted. And after that, we have to move to the $26 level. The $22 level underneath is going to be a hard floor, but it has been broken recently, at least in the last year or so, slightly. It was a short-term move. In that environment, I think you get really aggressive buyers.

Either way, I do not want to short silver, and I think silver, right along with gold, should perform fairly well this year. Keep in mind that the silver market continues to see a lot of volatility, but it also will pay close attention to the idea of interest rates rising or falling, industrial demand, and of course geopolitical issues that could drive silver higher as it is considered to be a precious metal as well as an industrial one.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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