Silver Price Forecast – Silver Continues to Look Strong

Christopher Lewis
Published: Apr 12, 2024, 14:59 GMT+00:00

The silver market rallied yet again on Friday, as traders continue to run towards precious metals.

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Silver Markets Technical Analysis

You can see that we have rallied quite significantly during the trading session, and as we are threatening the $29.50 level. With that being said, I think you’ve got a situation where we continue to see buyers step in and pick up little bits and pieces of this contract. You cannot jump in with a full position after a move like this, silver will punish you for doing so most of the time.

Quite frankly, this is a market that has gotten away ahead of itself. And I think in general, you have to look at $28,50 as a situation where you find a little bit of value. But if we break down below there, we could go as low as $26. That being said, we’re now stretched to the point where we are testing major resistance, and we are clearly overbought. That being said, it’s also possible that we are in the midst of a mania in this market, just as we are in gold.

So, with that being the case, I think you have to be very cautious. Chasing silver all the way up here is probably a great way to lose money. But then again, I could have said that about the last week or so. So with that in mind, this is a market that is fully running on emotion. And there is a real question now as to whether or not we get some type of crushing pullback. I think it probably happens, but it will more likely than not end up being a buying opportunity. If you’re patient, you should be able to find value.

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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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