The price of Silver has recently formed a short-term bearish pattern, leaving some investors concerned. Let’s take a look at why silver dropped and see if it presents a buying opportunity.
Silver Price Forecast: Buying Opportunity?
Looking at the five-day span on TradingView, Silver has had a hard time breaking through the $24.50 resistance level.
It looks like Silver could even break down through the $24 level into the $23 range.
Is it time to panic?
#Silver continues to trade sideways forming a bear flag. Since it was not able to breakout higher on a declining dollar, I would expect a sharp decline to $23.50 before it resumes the advance… pic.twitter.com/34pnOWPYjt
— Rashad Hajiyev (@hajiyev_rashad) December 28, 2023
Silver’s decline in price is likely correlated with the rise in $DXY (U.S. Dollar Index), which has bounced back recently.
Still, we remain strong on our convictions for a bullish year ahead for Silver.
These dips might even indicate a solid buying opportunity for any investors on the fence about precious metals.
#10Y Bond Yield rebounds… #DXY rebounds…
Bullion Banks mega short and now get their cover…
Sentiment extreme bullish
Neg Div technicals on all indicators, daily and weekly#Gold, #Silver, and #GDX head south. pic.twitter.com/2l80iUeIVp
— David Brady (@GlobalProTrader) December 28, 2023
When markets drop, sometimes its best to tune out the noise.
Other times it’s for good reason. Today’s declining silver price does not cause us any long-term concern.
We still expect Silver to break through the $30 level, hitting roughly $34 by the end of 2024.
However, the bearish pattern forming could stick around for another few days.
If we zoom out a little — rather than getting swept in a slight decline — we can see that Silver is largely trending up over a large channel.
— Tim Hack (@realTimHack) December 26, 2023
This appears to be a ‘tune it out’ type situation.
We remain strong on our Silver price forecast for 2024 and view this recent decline as a decent buying opportunity.
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