Silver Futures Index $SILVER (SILVER)

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Silver Weekly Price Forecast – Silver Continues to Look For a Base
By: Christopher Lewis | May 3, 2024

• The silver market has fallen a bit during the week, as we continue to pay close attention to the $26 level, an area that has been important multiple times in the past.

Silver Markets Weekly Technical Analysis

And you can see that we spent most of the week falling. At this point, we are testing the $26 level, a large, round, psychologically significant figure that has been important multiple times. The $26 level is an area that was previously the top of a major resistance barrier.

But at this point, if we break down below $26, this will just simply be the latest throw over. Alternatively, if we turn around and rally from here, we could see a rather significant move to the upside in silver. Perhaps trying to get back to the crucial $28.50 level. The $28.50 level, of course, is an area that’s been important multiple times going back, so it should not be a huge surprise to see that we have pulled back from there.

That being said, keep in mind silver is not gold and therefore it reacts a little bit differently to a lot of the crosscurrents that currently cause havoc in the markets. Interest rates, of course, have a major influence, but there’s also industrial demand, as silver is considered to be a fairly important industrial metal. Geopolitics can come into play, but silver is basically playing little brother to gold in that argument as well. It’s not really a safety asset, it’s more or less a highly speculative one and therefore much more volatile. Because of this, position sizing is paramount in general, and therefore we have to look at this through a lens of caution more than anything else.

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