Silver Price Forecast – Silver Continues to Look For Floor

Christopher Lewis
Published: Apr 25, 2024, 14:38 GMT+00:00

The silver market has been very noisy in general, but at this point I think you have to look at the market through the prism of the longer-term trend.

In this article:

Silver Markets Technical Analysis

Silver has gone back and forth during the early hours on Thursday, as we continued to hang around the $27.50 level and the $27 level. After initially plunging early this week, it looks like we are doing everything we can to hang on to this region, and as long as that’s the case, it’s likely that we will eventually rally.

If we do not, then the $26 level is an area underneath that I think should offer plenty of support, with the 50 day EMA tying right into it as well. The $26 level has a long history of being important, and market memory certainly will be paying close attention to it. On the other hand, if we do rally, then the $28.50 level is your next major resistance barrier as it is an area that goes back very, very long to show signs of resistance all the way to the $30 level.

Keep in mind, silver is not just a precious metal, it is also an industrial metal. So therefore, I think you need to pay close attention to that. But ultimately, we are in an uptrend, and I think it’s probably only a matter of time before dips get bought into. But in the short term, I think it’s more or less going to be a situation where we are trying to figure out whether or not we are going to break down further, or if the brutal selling is over and we can recover.

The next couple of days could be rather choppy, but in general we’re still very much in an uptrend. That being said, keep in mind that silver can punish traders who are “too large” in the market, so keep in mind that your position size should be reasonable, especially in this environment.

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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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