Silver Futures Index $SILVER (SILVER)

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Silver Continues to Find Buyers at Lows
By: Christopher Lewis | February 9, 2024

• Silver continues to look bullish as we have shown quite a bit of support underneath near the $22 level.

Silver Markets Weekly Technical Analysis

Looking at the silver chart, you can see that we fell down to the $22 level and the $200 a week EMA, only to turn around and show signs of life again. Ultimately, this is a market that ended up forming a bit of a hammer, and that does suggest that perhaps we are going to bounce towards that 50 week EMA above. All things being equal, this is a situation where market participants are simply trying to build up some type of basing pattern and show its signs of life. If we can take out the highs of the previous week, then I believe that silver could take off to the upside, going towards the $24 level, and possibly even as high as $24.50, finally opening up the door to $26.

Looking forward, you will have to pay attention to industrial demand, interest rates, and of course geopolitical concerns. All things being equal, this is a market that continues to see a lot of volatility, but that’s nothing new for silver as it is extraordinarily erratic at times. Keep in mind that silver is at the bottom of a huge range, so therefore it’s likely that the market will continue to be noisy but supported at this point in time. If we were to break down below the $22 level, then the next major support level is closer to the $21 level. In general, this is a market that I think is ready to bounce but will have to wait and see how that plays out in this region, as it is so important from a longer-term perspective looking back several years.

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