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Silver Price Forecast – Silver Rallies to The Upside Again

By:
Christopher Lewis
Published: Apr 15, 2024, 13:38 GMT+00:00

The silver continues to see a lot of upward pressure, although there were a lot of issues above in the past that could be in the forefront of trader’s minds.

In this article:

Silver Markets Technical Analysis

Silver rallied again during the Monday session after initially pulling back to pierce the $28.50 level. This is an area above that has caused a significant amount of resistance and I would be a bit leery of silver between here and $30. I think there’s a ton of resistance waiting to jump into the market, perhaps a lot of profit taking, perhaps paper silver markets pushing things around. After all, there have been numerous scandals of manipulation of price, especially near this area in the past, where banks like JPMorgan have been fined millions of dollars. That being said, they make a lot more than that, so they don’t have a problem doing it again.

Short-term pullbacks though, should attract a certain amount of attention because clearly precious metals are going higher. And with that being the case, I think you have to look at it through the prism of a market that you’re looking for value. Whether or not you find that value right now remains to be seen, but clearly it is a market that you can’t short. In fact, the idea of shorting silver anywhere above $26 is a bit tricky at this point, unless something fundamentally changes.

Right now, I just don’t see that happening. So, with that being the case, it’s very likely that any dip that appears will probably attract a certain amount of buying pressure. If we were to break above $30, that would send silver skyrocketing. We’ve seen that happen a couple of times in the past, but $50 is always a bit difficult.

Also, you’re starting to hear a lot of chatter on the internet about how great silver is, which is generally a sign of getting closer to the end of the run, not closer to the beginning of a bigger one. That doesn’t mean it can’t rip higher, it’s just that history tells us this. You have to be positive, but whether or not this is a longer term trade, we’ll just have to wait and see.

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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