Silver Futures Index $SILVER (SILVER)

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Silver Continues to Consolidate After Big Drop
By: Christopher Lewis | April 29, 2024

• The silver market continues to consolidate in the early hours of Monday, as we are trying to get our “sea legs” after the recent sell off in this volatile market.

Silver Markets Technical Analysis

You can see silver has been back and forth there in the early hours on Monday, as we continued to sort out whether or not we are going to go higher from here or if we are going to break down. I think this is a very interesting time for silver, due to the fact that we have seen quite a bit of selling pressure, followed by the market just simply sitting sideways.

If we do fall from here, then I think it would make a certain amount of sense that we could go down to the $26 level. An area that’s been important multiple times, and of course, also features the 50 day EMA right now. So, I think all of that combines for a nice floor. The question now is whether or not we can find enough buyers to take off from here, or if we need to pull back and offer a bit of value.

Keep in mind that silver will follow gold to a point, but at the end of the day, silver is not gold, it is also an industrial metal. So, there are some other factors involved here, but ultimately, I think you’ve got a real shot at an attempt to go higher either here or down at the aforementioned $26 level. If we can take out the highs of the Friday session, then I think that’s when we figure out that the momentum is to the upside.

And we could go looking to the $28.50 level, which previously had been massive resistance. Regardless, you need to be very cautious with the idea of being overleveraged in this market. Silver can really do damage to your account if you are too big in it.

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