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The price of Silver seems poised to play catch up with gold this week as traders and investors scramble to find alternatives outside of stocks and bonds due to the Silicon Valley bank crisis.
Although sentiment has calmed down somewhat after the Fed stepped in with QE light earlier this week I still believe that gold and silver are going well. However, silver has broken its correlation with gold.
Gold has traded significantly higher over recent days, nearly $100.00 higher, while the price of silver has done relatively little and underperformed gold on all fronts as investors first moved into the yellow metal.
I would suggest that at $21.50 silver is a strong buy, and we could reasonably expect the price of silver to at least move towards the $23.00 and maybe even the $24.00 area over the coming days.
Current sentiment metric towards silver show that traders are turning more bullish towards the price of silver. The ActivTrader market sentiment tool shows that 82 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 and may have been squeezed during the latest price dip. 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 reversed over recent days and is now moving towards its 200-period moving average on the four-hour time frame, which is the short-term bull/bear marker.
Looking more closely at this time frame you can also see bullish MACD divergence extending towards the $23.50 area which is likely going to reversed. We could even see $25.00 challenged.
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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 $21.00.
The clearly visible range low and high is seen on the daily time frame over the medium-term. Silver needs to get back above the $24.00 level to avoid a long-term range break to the down in March.
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