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Silver Price Forecast – Silver Continues to Look Strong, And Stretched

By:
Christopher Lewis
Published: Apr 9, 2024, 13:25 GMT+00:00

The silver markets are bullish at the moment but are starting to look a little overdone. At this point, I would anticipate some kind of pullback that you might be a buyer of. However, there are a couple of clear levels to watch.

In this article:

Silver Markets Technical Analysis

Silver is slightly positive during the early hours on Tuesday, but at this point in time, I think what we really need to pay attention to is a couple of different things. Number one, we have quite a bit of excess here. We have stretched a bit. The RSI is sitting above 70 and rising. And at this point in time, a pullback’s probably necessary. Number two, I would focus on the idea that we have seen the $28.50 level offer significant resistance in the past.

So, I do think that it makes a lot of sense that we see market participants look at that as an area they may be a little bit concerned about. Given enough time, I fully anticipate that we will challenge $28.50. Underneath, I think the $26 level continues to be a major area of support. So, with that being said, any pullback to that area certainly catches my attention.

If we were to break down below the $26 level, then the 50-day EMA comes into the picture. Now, thirdly, keep in mind that silver is basically riding the coattails of gold as it has been exploding to the upside for some time.

Geopolitical concerns out there continue to make precious metals something worth buying into. And of course, we have the debt issuance by the Americans, which of course has helped as well. With that being the case, and of course, the possibility that central banks may be cutting rates, it all ties together stronger, stronger precious metals markets. But at this point, I think we do need a little bit of a pullback, perhaps, to bring more people into the market.

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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