The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Silver’s Surge: Can It Reach $50 an Ounce This Year?

by admin April 6, 2024
April 6, 2024
Silver’s Surge: Can It Reach $50 an Ounce This Year?

The likelihood of silver reaching $50 an ounce this year is a ‘real possibility,’ according to analysts. More conservative yet bullish forecasts plot silver’s target range between $35 and $50.

What’s driving the bullish outlook? 

  • The global silver supply is expected to climb amid a fourth straight annual deficit in global supplies. 
  • The surge in silver demand reflects both monetary and industrial interests. 
  • And finally, the current gold-to-silver ratio is on the high side (between 85 and 90), suggesting that silver is undervalued.

A Macro Look at Silver’s History and Current Price Targets

CHART 1. MONTHLY CHART OF SILVER FUTURES ($SILVER). Note the vast expanse of the current analyst price target range. Chart source: StockCharts.com. For educational purposes.

If you look at the monthly 15-year chart of silver, you’ll note that the “poor man’s gold” hasn’t reached anywhere near $50 an ounce since it spiked in 2010. While several analysts set price targets starting at $35, note that silver has significant resistance at $30 (see dotted blue line), stemming from 2020 and 2021 highs.

Another thing to note is that silver tends to see a relatively significant surge in almost every instance of the Chaikin Money Flow (CMF) indicator rising above the zero line (except for 2017). Currently, the CMF is giving this signal. Can this be the beginning of another significant rise in prices?

Now that we can see the macro picture, let’s look at the near term context.

CHART 2. DAILY CHART OF SILVER FUTURES. After a protracted period of range-bound trading, silver has finally broken free. Will this breakout falter like previous attempts, or will it lead to a price surge that fulfills analyst expectations? Chart source: StockCharts.com. For educational purposes.

Looking at a six-month daily chart, silver has begun outperforming the Invesco DB Commodity Index (DBC), a broad index of commodities. Silver’s performance against gold is rising yet still undervalued compared to the yellow metal. These are generally bullish indications. 

However, watch out for the divergence in momentum between silver’s price and the Money Flow Index (MFI), a volume-weighted Relative Strength Index of sorts (see descending blue line on MFI indicator). 

The last candle is also a spinning top (close lower than the open) which has 51% odds of reversing (according to technical analyst Thomas Bulkowski’s performance studies).

Assuming your forecasts align with analysts who anticipate a surge in silver prices, reaching $35 or even $50 per ounce, what should you expect if silver experiences a downward reversal?

See the two black lines on the chart marking the two most recent swing lows. If the price falls below these two lines, both of which should provide support if the overall market sentiment is bullish, you can assume that silver will fall back into the trading range cycle. 

What to Watch Out For

For silver bulls, it all boils down to this: Is the current breakout going to propel silver to new heights or is it going to fall back within the trading range?

The longer-term momentum (via CMF but on a monthly scale) presents a bullish scenario, but one that might take days or weeks to play out. The shorter-term picture indicates that silver is likely to pull back. The main thing to watch is whether silver bounces or falls below the most current swing low points. If the bulls have the near-term advantage, you can expect a bounce; if not, price will likely fall back into the trading range cycle.

The Bottom Line

Analysts and industry experts highlight that the growing interest in silver, coupled with supply constraints and its pivotal role in green technologies, positions it as a metal to watch closely in the coming months. However, the technical outlook presents a complex scenario that requires careful consideration of mixed and conflicting factors. If the more fundamentally aligned analysts are correct, signs of the anticipated bullish outcome should become apparent on a technical basis.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0
FacebookTwitterGoogle +Pinterest
previous post
Double Top Forming in Growth vs. Value?
next post
Women’s college basketball final expected to set new viewership records amid Caitlin Clark phenomenon

Related Posts

This S&P 500 Rally is Defying the Experts...

September 22, 2024

Emerging Stocks to Watch – Breakouts, Momentum &...

May 17, 2025

SHOP Stock Ready to Surge: An Options Strategy...

September 19, 2024

Using Nasdaq 100 Specific Breadth to Measure Risk...

July 16, 2024

Technology Sector Participation Is Fading

June 7, 2024

EQUITIES CLIMB OFF LOWS WITH A PUSH FROM...

April 30, 2024

These SURPRISING Sectors are Showing Strength

June 5, 2024

An Awesome Breakthrough in S&P 500 and Nasdaq:...

July 7, 2024

Secular Shenanigans

October 28, 2024

DeepSeek Rattles AI Stocks – Should You Buy...

February 1, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • OpenAI to release web browser in challenge to Google Chrome

      July 11, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 11, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 11, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 11, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 11, 2025
    • How to Find Compelling Charts in Every Sector

      July 11, 2025

    Categories

    • Business (1,291)
    • Politics (3,959)
    • Stocks (1,506)
    • Uncategorized (45)
    • World News (1,284)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved