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Silver Price Forecast – Silver Continues to Look Threatened

By:
Christopher Lewis
Published: Apr 22, 2024, 13:41 GMT+00:00

The silver markets are paying close attention to the idea that it has gotten ahead of itself. This is a market that is inherently volatile, so you will have to be careful.

In this article:

Silver Markets Technical Analysis

Silver has gotten absolutely hammered during the early hours on Monday as perhaps a bit of profit taking has kicked off. At one point, we were down 4.5%. Whether or not that continues remains to be seen, but clearly, we are in a situation where the market has got way ahead of itself, and it does make a certain amount of sense that we have fallen.

Whether or not we continue to go lower will be sorted out later in the session. But if we do break down from here, it’s very possible that we will go down to the $26 level. The $26 level is an area previously seen as resistance, so I think you have to look at that as a potential support area that we can start buying into.

We’ll have to wait and see whether or not that actually ends up happening. Otherwise, we could just simply bounce from here and go looking to get back to the $28.50 level, which is an area that has been important more than once. With that being said, I think you’ve got a situation where you look for value. You may have just found it, but you get involved very quietly because quite frankly, silver is a volatile beast and can cause massive headaches for most traders.

There is a lot of resistance above the $28.50 level that you need to be aware of, so make sure you’re paying attention to that. And with that being the case, you know, all the way to the $30 level, I think is a bit of an issue. So, this pullback is a bit of a gift. Whether or not it’s a longer term buy and hold market is a completely different question. Because remember silver is not gold, despite the fact that it can move in the same direction.

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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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