Silver Forecast: Silver Continues to Test Resistance

NEW YORK (April 22) Silver has been slightly negative during the course of the trading week, as it looks like gravity has finally entered the chat, so to speak. After all, the market has gone straight up in the air for a month and ½, and of course we are threatening the $26 level, which is a large, round, psychologically significant figure, but more importantly was also an area where we see quite a bit of selling pressure previously. Because of this, I think it’s a situation where the market neets the pullback in order to find a certain amount of support, as the market cannot go straight up in the air forever.

Underneath, the $25 level seems to be offering a little bit of support, but I also think there’s even more support closer to the $24 level, which was the middle of the overall consolidation that we have seen late in 2022, extending into January 2023. Ultimately, that’s an area that should offer a bit of a floor. If we were to break down through that rectangle, meaning that we broke down below the $23.50 level, then you have a completely different look to the silver market, and it could signal that we are going much lower.

Keep in mind that silver is also an industrial metal, not just a wealth preservation vehicle. Because of this, there’s probably going to be a bit of hesitation and silver, as global demand is going to be weak in a very sluggish global economy. That being said, I would not be a seller of silver, rather I would look for bits and pieces of value on dips that I could take advantage of in order to continue with the overall uptrend.

FXEmpire