Silver Technical Analysis: Looks Bullish Above $17.50
Silver prices witnessed a sharp increase over the past few weeks, after a rising wedge pattern was observed.
Silver’s current valuation suggests that a further price gain to$19.40 per ounce remains a bullish, approachable target, as the metal currently trades at $17.93 per ounce, as of June 23rd, 2020.
Medium-Term Trend Analysis of Silver
Silver entered 2020 with an opening price of $18.05 per ounce, which plunged to an 11-year low of $14.09 in March soon after the COVID-19 pandemic began to wreak havoc on global economies.
As the stock markets crashed by 12 percent, panic-stricken investors started moving their investments to safe-haven assets, including silver, which was at its lowest during that time.
The demand for silver started to rise sharply, and it ultimately resulted in a glorious price gain in May, which staged silver at $18.88 (See the chart below).
The rise-after-fall trend suggests that the silver market might be up for another Bull Run, just like the one that happened back in 2019, when silver reached a trading year-high of $19.55.
The short-term analysis also points to a further gain of up to $20.109 by next year.
The recent complications between the U.S. and Iran could also be a factor behind silver price growth, considering that the value of silver and gold tends to rise during a war situation, historically speaking.
Short-term Price Analysis
The short-term outlook for silver pricing remains bullish, as the metal seems to be trading above the $18.00 barrier for the rest of the months of 2020.
Is It the Right Time for Investing in Silver?
The technical analysis shows us an overall positive outlook for silver in 2020 and beyond. According to Kitco, silver may further move up by 9 percent by 2024, up to $19.508 per ounce, from a current value of $17.896 per ounce (see the chart below).
Considering the trends and all the other factors discussed in this blog, investing in silver appears to be a wise decision under the current market and economic circumstances.
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