Silver Futures Index $SILVER (SILVER)

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Silver Continues to Test a Major Ceiling
By: Christopher Lewis | May 10, 2024

• The silver market spent most of the week trying to rally higher, with an eye on the crucial $28.50 level. This is an area that has been like a brick wall multiple times, and therefore I am watching this market closely.

Silver Markets Weekly Technical Analysis

Silver has slammed into the $28.50 level in an area that has been an important resistance more than once. And I do think that it will be interesting to see whether or not we can get to the $30 level. That’s the real prize here. It’s worth noting when you look to the left on the chart, back in 2020, that we attempted this previously and now we are trying to do everything we can to break out above it. If we were to do so, then the $30 level is the next major barrier that you have to be aware of, which has been very difficult to overcome.

And in fact, I think we’ve only done it twice in about the last 60 years. So, we are definitely getting to the high end of silver and of course, there’s always the usual narrative of this time it’s different. I don’t know if I believe that after all, JP Morgan itself has been busted a few times manipulating the market up at these levels. It’s just the cost of doing business. You pay a few million in fines to make a few billion in gains. So we’ll see.

Ultimately silver is highly influenced by interest rates, geopolitical concerns, and of course, industrial use case scenario, mainly green technologies at this point. We’ll see how this plays out. It certainly looks bullish. I don’t know if I want to step in front of this and start shorting, but we are in an area that has historically been a lot of trouble. And if you aren’t paying attention, you could buy at the top.

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