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If silver breaks above the recent high, it could reach the $27 level, and potentially even the $30 level on a longer-term trade.
- Silver has shown a bit of bullish pressure during the trading session on Wednesday, consolidating near the $25 region.
- This consolidation could be forming a bullish flag pattern, which technical analysts may interpret as a potential massive breakout.
- However, building up the necessary momentum to do so may require some work.
The current state of the world’s financial markets is precarious, and investors may be looking to silver to protect their wealth. However, silver is also an industrial metal, which may not help the market’s demand. As a result, we have a “push/pull” environment in the short term.
If silver were to pull back, the $24 level is an area to watch closely. It had been the epicenter of a massive consolidation area during the past winter, and there will likely be plenty of traders willing to get involved at that level. Breaking below the $23 level would be a significant downturn and could lead to a collapse in silver’s price. In that scenario, the US dollar would likely experience a spike in value.
If silver breaks above the recent high, it could reach the $27 level, and potentially even the $30 level on a longer-term trade. Breaking above $30 opens the possibility of reaching $50, a level that silver has attempted to reach several times in the last few decades. However, a catalyst is needed, perhaps a financial crisis, which is not far-fetched given the current state of global markets. After all, it seems like all noise, all the time lately, and there is no letup currently.
At the end of the day, silver is consolidating near the $25 region and forming a bullish flag pattern. A potential massive breakout may be on the horizon, but it will require building up the necessary momentum. Investors may be looking to silver to protect their wealth during a time of global market uncertainty. However, silver is also an industrial metal, which may not help the market’s demand. Breaking below $23 would be a significant downturn and could lead to a collapse in silver’s price. Breaking above the recent high could lead to a potential long-term trade, reaching the $30 and potentially $50 levels. However, a catalyst is needed for such a trade, which could be a financial crisis given the current state of global markets.
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