Silver Discovers Gravity

(March 21, 2024 - Christopher Lewis)

Silver has ran into a bit of gravity during the session on Thursday, as traders are likely to take a bit of a break from the momentum trade, at least for the moment.

Silver Markets Technical Analysis

You can see silver initially did try to rally during the trading session here on Thursday but gave back gains to show signs of hesitation. This does make a certain amount of sense because we have gone straight up in the air for the most part over the last several weeks. And of course, we are approaching that crucial $26 level that I have mentioned previously.

If we could break above $26, that would be an extraordinarily bullish sign, but right now it’s worth keeping in mind that the $26 level has been resistance for multiple years. A little bit of a pullback is probably a good thing here, and I do think that the bullish traders out there will more likely than not celebrate this and take advantage of cheap silver if and when they get it.

The $24.50 level is an area that I think remains attractive and therefore I think more of a buy on the dip attitude in that area is probably what we’re about to see. Keep in mind that interest rates have a major influence on silver and although interest rates are dropping later this year, and that’s pretty much a known fact, the reality is momentum has run out.

And that’s not necessarily a bad thing. You need new people coming into the market to keep up the momentum. This pullback should be a nice opportunity if you are patient enough, and of course, keep your position sizing reasonable.