The price of Silver as of this writing is nearly 23.900 USD with the commodity having come off early morning values which touched 24.300. The reversals from earlier highs achieved should be viewed as a normal reaction to the lightning-quick rise Silver has generated the past day. Tuesday’s low was near the 22.880 ratios before Silver saw a rush of buying.
When Silver broke through technical resistance near the 23.440 level yesterday, buying in the commodity increased. Silver is trading within sight of prices' important resistance levels. In the middle of December, Silver did trade momentarily over the 24.000 value and touched a high of nearly 24.110 on the 13th. After also trading above the 24.000 mark on the 14th, Silver stumbled and by Friday the 16th, the price of Silver was near a low of 22.580.
Speculative Run Higher in Silver with more Tough Hurdles to Come
Along with Silver jumping higher in value yesterday, the price of Gold also climbed suddenly. The price of Silver has been enjoying a rather solid trend higher since the third week of October when the commodity was near the 18.400 level. The climb in the value of Silver has correlated to the USD growing weaker over the same time period.
Yesterday’s swift move higher may spark interest from speculators who look at long-term charts. The last time Silver traded consistently over the 24.000 value was in April of 2022. And in March and April of this year, the price of Silver was over 26.000 for brief moments. Silver may look undervalued to speculators, but this doesn’t mean day traders should expect a sudden climb to these upper tiers. Realistic expectations are needed and risk management will be essential as always for wagers on Silver.
The 24.000 Level appears to be Vital Resistance for Silver
- As the price of Silver trades within sight of 24.000, speculators may grow intrigued. A move above 24.000 USD for the commodity that is sustained near-term could be a bullish signal.
- Holiday season trading could lead to thin volumes in Silver, which could allow the commodity to be influenced by large speculative positions. Volatility should be expected by day traders over the coming days.
Speculators cannot be blamed for believing Silver has additional room to move higher. However, the commodity remains a speculative wager that needs solid risk-taking tactics. Silver has shown the ability to lurch downwards a little more than one week ago, this after touching highs and attracting buyers who may have gotten hurt by the volatility. Silver may be a tempting buy on slight moves downward. If support near the 23.800 level remains durable, this may allow for quick-hitting buying bets looking for nearby resistance as taking profit targets.
Silver Short-Term Outlook:
Current Resistance: 24.030
Current Support: 23.720
High Target: 24.700
Low Target: 22.900
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