Silver Futures Index $SILVER (SILVER)

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Silver Continues To Threaten A Breakout
By: Christopher Lewis | November 24, 2023

• The silver market rallied a bit during the trading session on Friday, as we are trying to get to the $24 level.

Silver Markets Technical Analysis

Silver rallied a bit during the trading session on Friday, as it looks like we are ready to test the $24 level above. The $24 level is of course an area where we’ve seen a lot of noise in the past, so it would not be surprising at all to see this market pullback from there again. However, if we were to break above that level, then it’s possible that we could go looking to the $25.50 level above. That’s where we have seen a huge double top, so I think that of course is an area where people will be paying close attention. I do think that’s where silver tries the gown, and now we have the 50-Day EMA rising to break above the 200-Day EMA, kicking off the so-called “golden cross.”

Looking at this chart, we could pull back toward the $23.50 level again, which is the bottom of the current consolidation area. All things being equal I do think that short-term pullbacks are buying opportunities but whether or not we break out anytime soon remains a question. Looking at this chart, we could go back and forth for some time, while we try to build up the next move in one direction or the other. In general, I think this is a situation where we are lacking a bit of momentum, but it certainly looks as if it is trying to build up enough pressure to finally move higher.

This will be especially helped by interest rates dropping in the United States if and when that continues, which is a major driver of what happens with precious metals, and silver is even more sensitive than gold to that most of the time. With that being said, I think we got a situation where the market is going to be one that you need to be very cautious with, but it certainly looks as if the buyers are doing quite well at the moment, and I do think that they will continue to lead the way in general. Whether or not we can break above the $25.50 level is a completely open question at this point.

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