Silver Price Forecast – Silver Continues to Consolidate

Christopher Lewis
Published: Apr 18, 2024, 13:26 GMT+00:00

The silver market continues to bounce around in general, as the market will have to work off a lot of upward momentum.

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Silver Markets Technical Analysis

Silver continues to bounce around the $28.50 level, an area that has been important multiple times over the last several decades. Between here and $30, there is a significant amount of resistance and therefore I think it’s very difficult to be a buyer of silver at this point.

If we can break above here and go looking to the $30 level, it’s very important to pay close attention to it because historically speaking, silver has broken above 30 twice, and both times it has been an absolute melt up towards the $50 level. That being said, there are a lot of manipulators out there in the paper silver market, and I suspect it’s probably only a matter of time before they get involved.

Quite frankly, it’s easier to pay millions in fines and manipulate the market to make billions than it is to actually trade silver. Silver is extraordinarily volatile, and therefore you do need to be very cautious with your position sizing. On a pullback from here, I would love to see the market drop down to the $26 level, an area that is a large round, a psychologically significant figure, and an area that is now attracting the 50-day EMA.

Market memory dictates that we could see a bit of support in this area as it was significant resistance. Pay attention to interest rates, and pay attention to the gold market because they both have an external influence on this market. So that’s worth paying attention to as well. In general, this is a market that is overstretched and at the very least would need to go sideways anyways.

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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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