InvestingHaven’s first bullish target has been $34.70 since many years. This is documented in its annual silver prediction. As silver is approaching $34.70, the question becomes whether this is the end point or an acceleration point.
RELATED – The silver shortage: numbers, facts, emotions.
Since many years has the analyst team at InvestingHaven been talking about the $34.70 silver price target. Many considered it impossible. The market has spoken now. Silver is where we said it would be based on silver chart readings. Once again, opinions from readers have proven to be just that: opinions.
The chart has the answer, always. Chart readings can help investors tremendously, only those with an open mind though. Bias, as explained many times, is one of the biggest enemies of individual investors.
Silver price today, at the time of writing: $32.31.
Silver’s basing pattern almost complete
While our work is primarily based on chart patterns which we tend to annotate on our charts, it often pays off to look at charts without annotations.
Below is the silver price chart, on its weekly timeframe, without annotations.
The silver story is clear – silver broke out two weeks ago, it is now in a breakout territory. The multi-year formation morphed into a long basing pattern.
Remember – the longer the basing pattern, the higher the upside potential after a breakout.
To rise or not to rise? What does US Dollar think?
If anything, the rise to $34.70 was in the cards since two years. All our silver related articles have been featuring this price target, even the ones in the public domain, for instance Silver On The Rise – How Much Higher Can It Go?
From our analysis when will silver hit $50 an Ounce:
- It’s important to understand that predicting a price rally to $50 doesn’t mean a single, uninterrupted climb. The journey could involve two distinct stages.
- The initial stage might see silver moving toward $34.70, driven by a combination of technical and fundamental factors.
- Once this stage is achieved, the path to $50 could follow. It will be supported by strengthening market sentiment, potential supply-demand imbalances, and external catalysts.
With this in mind, the question is whether sentiment can continue to drive silver higher in the short term but also if leading indicator USD can allow for more upside in the price of silver.
The short version of the answer: is silver accelerating its move higher or will hit it resistance at $34.70, essentially is that it only matters to those that (a) have a short timeframe (b) want to maximize their profits. Both are going to create some form of stress. It is likely a better idea to simply take $50 as a decision point rather than $34.70. While this is not a forecast, it certainly is long term oriented guidance for long term investing success.
The focus on the longest term silver chart
The monthly timeframe of silver, again without annotations, makes it very clear – the first target of $34.70 is just one of the upside targets, but $50 is a no-brainer, irrespective of a potential break that silver will take in the summer of 2024.
Silver may break above $34.70 short term, or in a few months to quarters. The point is – $50 is the obvious target.
The question to ask, with this gigantic bullish reversal pattern: will silver ever hit $100 an Ounce?
It is too early to talk about price target of $100. While silver is likely to trade at or above $100, at a certain point in time, the key question is how to handle the $50 target.
One step at a time.
Whether silver goes in one straight line to $50 or not is the more immediate question. We believe the USD has the answer to this question, but also sector momentum and sentiment.
There is one more data point which might be relevant, we explained it in our latest gold & silver market report. While silver won’t make it easy to read its intentions, there are some data points to carefully monitor to understand what might be next.
