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Silver Price Forecast – Silver Continues to See Buyers

By:
Christopher Lewis
Published: May 28, 2024, 13:20 GMT+00:00

The silver market pulled back in the early hours on Tuesday but has turned back around to show signs of life again. The uptrend is very much intact, and I think this is something that we need to keep in mind overall.

In this article:

Silver Markets Technical Analysis

The silver market initially pulled back a bit during the trading session on Tuesday, only to see it turn around and rally to the upside. Silver continues to look like it’s trying to break out above the $32.50 level, and eventually we will. All things being equal though, this is a market that I think has a lot of noisy behavior attached to it, but it is bullish.

The reality is that silver is an extraordinarily volatile market, and it is a market that you need to be very cautious with your position sizing. However, historically speaking, once we get above the $30 level, it is a market that tends to just take off to the upside. It will be very noisy. It will occasionally be very dangerous to be involved in, but right now it certainly looks as if the buyers are taking over.

If we were to break above the $32.65 level, then it opens up a move to the $33 level. Silver is just ripping to the upside. So anytime it does get a pullback, I start to look at it as a potential buying opportunity. I recognize that this isn’t quite gold. It’s a little bit more volatile and a lot more dangerous. It also has an industrial component to it. So that also comes into play as well.

Either way, I’m not selling silver anytime soon. I’d need to see a drop below $28.50, and I think at that point, then you could start to have serious questions of shorting and staying short. But right now, it has to be a market that you’re looking for value to take advantage of, and I think that’s what most traders are doing.

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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