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.
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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.
Thank you for this valuable update. Personally, I think silver is trying to establish a 22/OZ floor, and it’s actually getting quite comfortable at the current spot price. Same with gold - getting cozy around 1950/oz. It also helps that premiums have come down significantly (with respect to American Silver Eagles). Manipulation, price gouging, shortages, or just the current environmental factors -history will tell where this is headed to.
Tradersweekly
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@Free_Loader, Thank you very much for your support. Possibly. I am more optimistic about gold because silver is more industrially oriented, and if a recession hits, it can put a lid on the price. But we will see. As speculation with small capital, it is acceptable, in my opinion.
Free_Loader
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@Tradersweekly As Janet Yellen said, collecting coins (American Gold and Silver Eagles) is the only hobby where you can spend all your money and still have some left. Pretty bleak picture you painted there, and I think I’ll slow down/suspend purchases for the foreseeable future for the reasons you put forth. That being said, when gold runs, silver runs double…
arvine11
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Nice analysis! bullmarket will continue by january 2024