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Silver Price Forecast – Silver Reaching a Potential Bottom?

By:
Christopher Lewis
Published: Feb 28, 2024, 15:39 UTC

Silver is reaching an area that has historically been supported, so therefore it’s very interesting that we are bouncing early during the trading session on Wednesday after an initial plunge.

In this article:

Silver Markets Technical Analysis

Taking a look at the silver market, you can see it did fall a bit during the trading session here on Wednesday but is starting to find a bit of support just above the $22.25 level, as you would expect, and now it looks like we are going to try to take off to the upside.

I think it would just be a simple consolidation move. After all, silver does tend to be very choppy anyway, so that does make a lot of sense. Keep in mind that silver is going to be highly sensitive to interest rates, it’s going to be highly sensitive to industrial demand, and it could be somewhat sensitive to the idea of geopolitical concerns as it is a precious metal. With all of that, I think that we are more likely than not going to see a bit of a bounce here, and I do think that the $22 level holds. And the market is certainly one that has respected the area between the $22 level and the $23.50 level. And therefore, as we’re closer to the bottom, it makes sense that we see plenty of interest.

I don’t think that much changes and that in and of itself has me thinking about being bullish. Now, I don’t necessarily think that silver takes off like a rocket, but I do think that we continue to see a lot of this back and forth noise. If we were to break above the $23.50 level, then it allows a move to the $24.50 level, which is an interesting and important major resistance barrier.

If we were to break down below the $22 level, then it’s likely that we could drop to the $21 level underneath, which was even more support. So, all things being equal, I do like the idea of picking up a little bit of silver based on value at the moment. That being said, be cautious with your position size because silver can be quite erratic and cause a lot of issues.

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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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