Is silver going to $26 per ounce? Maybe.

In our preceding discussion on silver, we delved into the dynamics of supply and demand, highlighting the deficit in supply compared to demand throughout 2022. In addition to that, we talked about how this opportunity, coupled with some other factors, could present an interesting opportunity to go long silver. Since then, the price of silver rose from around $22.50 to more than $25 just a few days ago. Currently, one troy ounce of silver trades around $24.85. We continue to be bullish on silver and pay close attention to the area between $24.55 and $24.64. If silver manages to defend this area and ideally hold above it, it will be bullish. But if it fails and drops below its 20-day SMA near $23.90, it will prompt us to secure profits. At the moment, our price target of $26 stays in place.

Illustration 1.01

Illustration 1.01 displays the daily chart of XAGUSD. The yellow arrow indicates a bullish breakout from the downward-sloping channel.

Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

Comment:

Today, silver broke above $25 again. To further bolster the bullish case in the short term, we would like to see it break above $25.269.

Trade closed manually