- Silver has shot straight up in the air during the trading session here on Thursday as we have reached and breached the $45 level.
- We have given it back quite a bit and I think this is to be somewhat expected due to the fact that we shot all the way to the $45 level rather quickly. And of course we are a little extended.
- That being said, we had previously been in a bullish flag, and broken out of it, came back to test the top of it for support, found it to be supportive, and then took off to the upside. The measured move of the bullish flag is for the silver market to go look into the $46 level.
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There's really nothing on the chart that tells me we can't get there. And I think part of the giveback during the trading session may have been due to GDP numbers in the United States coming out hotter, quite frankly, much hotter than anticipated and that had the US dollar spiking a bit. So that may have put some negativity into the silver market.
All things being equal, this is a market that people are willing to get in and buy value and value of course being cheap ounces of silver. With that being the case, the market is likely to continue to see a lot of buy on the dip kind of value hunting scenario and I think given enough time, we not only hit the $46 level, but it's possible that we could look into the $50 level, but that's a long-term target.
Keep in mind, and this is a problem that a lot of retail traders uh tend to forget is that to get from 45 to $50 is not just a $5 increase, but it's about an 11 ish percent move. So, it's not something that's going to happen overnight. Regardless, when you look at silver, you can clearly see that it's in an uptrend. So, it's a buy on the dip market, it's going to remain that for the foreseeable future. And therefore, I remain bullish.
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