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Silver Price Forecast – Silver Continues to Build a Base

By:
Christopher Lewis
Published: May 3, 2024, 14:20 GMT+00:00

The silver markets continue to see a lot of noise, as it looks like we are hanging about a major support level in the form of $26.

In this article:

Silver Markets Technical Analysis

You can see silver has been all over the place during the trading session on Friday, as we have been hanging around just above the $26 level for a while. With that being the case, it’s very possible that we may have a situation where silver ends up being more sideways as we try to build a bit of a base, perhaps in order to get long again?

Keep in mind that silver is an industrial metal as well as a precious metal, so you have to look at it through that prism. All things being equal, I don’t like silver as much as I like gold, just simply because it doesn’t have quite the geopolitical padding. That being said, it is a bullish market and if you get it right, it can make you quite a bit of money.

But on the other hand, if you get it wrong, it can be a very painful market to be involved in. So do keep that in mind. Ultimately, if we can hold $26, I think then we could make an attempt to get back to $28.50. But we need to see some type of momentum. If we break down below $26 on a daily close, then I would start to become a bit worried. Ultimately, this is a market. That position sizing will be everything, and at this point in time, I’d much rather see a little bit more of a bounce in order to start buying into it.

For a look at all of today’s economic events, check out our economic calendar.

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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