Silver Price Forecast – Silver Continues to Rally Significantly

Christopher Lewis
Published: Mar 5, 2024, 14:10 UTC

The silver market has initially dipped during the trading session on Tuesday, only to turn around and show signs of life yet again.

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Silver Markets Technical Analysis

As you can see, we initially pulled back just a bit during the trading session on Tuesday, only to turn around and shoot straight up in the air. I think this is a market that continues to see a lot of noisy behavior but still very bullish behavior. Because of this, it is a “one-way trade” from everything that I can see, and of course we have a well-defined consolidation range over the longer term charts that helps quite a bit as well.

After all, we had seen that explosive candlestick on Monday, and now it looks like we could go looking to the $24.50 level. Ultimately, I think this is a scenario that sooner or later traders will continue to look at it through the prism of whether or not they can find some type of value. Silver, of course, is following gold, which has taken off, and although silver has been very explosive it’s not basically at all-time highs like gold is. So, with that being said I think silver is probably going to continue to play a little bit of catch up and I do think that $24.50 is probably going to be hit very soon. Underneath I believe that the $23.50 level continues on for support followed by the 200 day EMA.

The $22 level continues to be a massive floor, and therefore I think you’ve got a situation where you’re just buying dips. You don’t waste your time trying to short this. If we break at 24.50, then the likelihood of a move to 26 is very real. Keep in mind that silver will pay attention to interest rates, it will pay attention to the US dollar, and of course, risk appetite in general. Silver is also an industrial metal, so never forget that also, as it can have a major influence on what happens in this market and does make it a little bit different than trading gold.

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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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