Here’s The Key Level That Silver Needs To Break

(April 30, 2023 - Jesse Colombo)

After surging in 2020, silver has struggled to continue its price momentum. Though it is still 40% higher than it was before the pandemic started, the precious metal has meandered in directionless trading for the past few years. This trading range has created a resistance zone overhead from $26 to $30. If silver can close above that zone with healthy trading volume, that would signal that another bullish phase has likely begun.

Weekly silver chart

The longer-term chart shows how the $26 to $30 resistance zone has created a price ceiling in silver since 2020. If silver can finally break out, there is a high probability that it will attempt to gun for its 2011 high of approximately $50 per ounce.

Monthly silver chart

Despite silver’s tepid performance over the past few years, it is one of my favorite investments due to its undervaluation relative to gold and how I expect it to perform in the coming economic downturn. The next economic downturn will most certainly be countered by more money printing, lower interest rates, and the accumulation of even more debt, which are all positive developments for gold and silver.