Should You Invest in Silver or Gold in 2024?
Silver prices have surged in recent months, reaching a three-year high of $29.80 per ounce on April 12th, 2024. This surge is fueled by a combination of factors, including safe-haven demand due to geopolitical tensions and strong technical indicators pointing towards a bullish future. Here's a breakdown of the technical analysis for silver and what it suggests for the rest of 2024.
Uptrend Confirmation and Record Highs in Sight
Examining the daily price chart, we can clearly see an upward trend for silver since the end of Q1 2020. The recent breakout above the $26.00 barrier signifies a significant development, paving the way for further short-term and medium-term gains. This upward momentum positions silver to surpass the $30.00 mark and potentially reach $35.00 by the end of the year.
Long-Term Technical Models: Inverted Cup and Handle
Shifting to the weekly chart, we observe the formation of an inverted cup and handle pattern, a bullish continuation pattern. Confirmation of this pattern hinges on breaking above the crucial $30.00 level. A successful breakout could propel silver towards long-term gains, potentially reaching $40.00 and even $48.00.
Another bullish development is the ascending triangular flag pattern. This pattern suggests a pause in the upward trend before a potential surge. We believe this flag will act as a springboard, pushing silver past the $30.00 barrier and triggering a strong upward wave towards the aforementioned targets.
Temporary Correction and Renewed Momentum
The recent ascent from $21.92 encountered a temporary hurdle at $29.80, leading to a slight correction. However, this correction found strong support at the 23.6% Fibonacci retracement level of $27.90. This indicates positive buying opportunities and the potential for a new, short-term upward wave, ultimately strengthening the overall upward trend.
Technical Indicators Aligned for Growth
Technical indicators further reinforce the bullish outlook. The stochastic indicator nearing the oversold zone suggests an upcoming price increase, potentially aiding silver in overcoming resistance levels and activating the proposed positive model scenarios. Additionally, the 50-day moving average continues to provide crucial support for the price from below.
Silver Poised for Significant Gains
Based on the technical analysis presented, we expect silver prices to continue their ascent in the short and medium term. The initial targets include $35.00, followed by potential reaches towards $40.00 and $48.00, fueled by the positive long-term technical model. With strong technical support and a bullish overall trend, silver appears poised for significant gains in 2024.
