Silver Price Forecast – Silver Continues to Power Higher

Christopher Lewis
Published: Apr 3, 2024, 13:41 UTC

Silver broke a major barrier early during the session on Wednesday, as the market continues to favor metals overall.

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Silver Markets Technical Analysis

Silver has been very bullish for some time, and we have broken above the $26 level, which is a major move in this market as the $26 level is a situation where there has been a lot of selling in the past and therefore I think it does make a certain amount of sense that the market would see some struggle here. That being said, it looks like we are trying to break out to the upside and perhaps it’s the influence of gold driving silver higher as well.

Short-term pullbacks continue to be bought into and I think that the $24 level underneath is supported, $24.50 as well, and right at the 50-day EMA so it all comes together for a buy on the dip market. Keep in mind that silver will continue to rally based on interest rates dropping and of course geopolitical concerns. Gold does have that knock-on effect but quite frankly I think silver is kind of in its own world as it’s also an industrial metal.

As things stand right now, I’d be very cautious with signs of exhaustion because that could lead to something ugly. That being said, you can’t short the market any time soon. We would need to see both metals probably drop a bit before you can have that argument. On the weekly chart, we are approaching a major resistance barrier as well.

So, all things being equal, although silver looks very strong, probably is also a bit stretched at this point in time. Nonetheless, this is a market that can only be traded with a bullish mindset at the moment. However, keep in mind that the “commercials” in the futures markets are extremely short, meaning that sooner or later that will have to be dealt with.

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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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