The price of Silver is starting to prepare for its next major price move as it consolidates in an extremely tight price range between the $23.00 and $24.00 level over recent days.
A move above the metals two weeks’ trading range, around $22.50 to $24.50, could prompt strong technical buying as the shiny-metal targets close to the $27.00 resistance level.
Precious metals in general have moved sharply higher this year. Copper caught a strong bid as China re-open and pushed down COVID-19 restrictions, prompting strong risk-on sentiment.
Gold also ramped higher significantly this year. Silver and gold usually share a strong price correlation due to the safe haven status of both metals and their correlation with the greenback.
Watch out for fireworks in silver if the situation in the Ukraine worsens. Silver and gold tend to perform well in times of geopolitical uncertainty. Gains above $24.50 area could prompt stronger upside gains ahead.
Current sentiment metric towards silver show that traders are turning less bullish towards the price of silver. The ActivTrader market sentiment tool shows that 66 percent of traders are bullish towards silver.
While this is no one-way sentiment bias for silver price as retail have been heavily leaning on the buy side. In my opinion this is a bullish sign.
Silver short-term Technical Analysis
The short-term technicals for the shiny-metal shows that silver has large sideways price consolidation pattern, and that silver is going to breakout once it moves away from this consolidation zone.
Looking more closely at the size of the price consolidation we are probably going to see a breakout in the region of $2.00 at some point.
Silver Medium-term Technical Analysis
The daily chart shows that silver price is in good shape over the medium-term horizon while they hold above the neckline of an inverted head and shoulders pattern, located around the $22.50 price level.
The clearly visible range breakout on the daily time frame indicates that we should probably expect more upside around the $5.00 level at some point silver visiting the $28.00 level.