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The price of Silver seems to be in the process of ending its large technical price correction after reversing sharply towards the $24.00 level to finish of the 1st quarter of 2023.
Silver prices have rose for three straight weeks now putting bulls back in the driving seat. The rally came on the heels of a weaker US Dollar index and another move towards the $2,000 level for gold.
The physical buying this year has been strong from central banks, and once the Fed concludes hiking rates, news of the pivot will spark an additional potential buying opportunity in silver.
Precious metals like gold have moved sharply higher this SVB and Silvergate bank drama, which has caused investors to reconsider well to store their wealth if bank failures happen.
Silver could play catch up in the second quarter to gold price. Silver and gold usually share a strong price correlation due to the safe haven status of both metals and their correlation with the greenback.
Current sentiment metric towards silver show that traders are turning more bullish towards the price of silver. The ActivTrader market sentiment tool shows that 85 percent of traders are bullish towards silver.
There is a sentiment bias for silver price as retail have been heavily leaning on the buy side and may have been squeezed during the early month dip. In my opinion those who have sat tight will be rewarded.
Silver short-term Technical Analysis
The short-term technicals for the shiny-metal shows that silver has reversed to the upside and is testing back towards the February highs. A bullish pattern could also be forming.
Looking more closely at the size of the inverted head and shoulders price pattern and measuring the pattern, we are probably going to see a breakout in the region of $4.00 at some point. Taking silver towards $28.00.
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Silver Medium-term Technical Analysis
The daily chart shows that silver price is in good shape over the medium-term horizon while the price holds above its 200-day moving average, close to $22.00.
The clearly visible trendline on the daily chart depicts that silver prices could be about to surge. Silver needs to get back inside the $24.00 level to force a long-term technical breakout.
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