Silver’s winding up to a new bullish rally in upcoming months. Will it break through?

Silver seems to be cruising the market to the top.

Yes, you heard us right and this is a moment all traders should look forward to.

Silver is on a new trajectory after the US government reported weaker-than-expected inflation pressures.

Shifting the focus to Ankit Kapoor, Head of Research at Commodity Samachar, he had this to say. “Silver prices have been fluctuating close to the money cost. I expect that silver won’t go beyond $18.50 any time soon. I also suggest that this is the best opportunity for an upside target of $28 – $32 in the upcoming 6-8 months. Silver has become highly bullish and this will be a great time for traders to focus on this aspect”.

Despite the not-so-exceptional performance, silver has been attracting a lot of attention as several investors are expecting industrial demand driven by a green energy transition. Solar energy is an integral component with respect to the rise in silver. As per our prediction published in the article Silver and Solar – A Relationship that’s exceeding demand and expectations, solar and technological advancements in green energy are bolstering silver’s demand and aiding it to cruise above expectations.

The solid potential is being witnessed in silver by the end of the year as the Federal Reserve starts to cut rates as recession conditions begin to recede.

Reuters reports have been coming in stating that the inflation is slowing rapidly enough to allow for the Federal Reserve to tighten the US monetary policies as per the expectation of an interest hike at its meeting in 2 weeks’ time. Furthermore, underlying inflation, which has continued despite the Fed’s concerns, decreased more than anticipated to 4.8%. These events are paving the way for boosting the prospects for economic recovery, and this will set the white metal towards $28 – $32 by the end of 2023.

Technical Outlook:

Silver prices witnessed their biggest intraday jump in one month. Prices are hovering near their highest in four weeks. The white metals prices witnessed a speculative jump as the Dollar (USD) lurks near 15-month lows against its main competitors.

Silver prices are trading in bullish three-drive patterns on the chart above. Prices have already finished drives 1 and 2 of its two. Now prices appear to test its next drive which would be 127.2% Fibonacci Retracement of its previous drive. The upside target is projected around 81000 and plus according to the above chart pattern.

In the near future bullish trend is expected to continue, but prices would need to break key resistance 74580 on a closing basis in order to give a 5%-7% jump. Else, any temporary correction towards 71000-70500 will attract buying activities for the target 72500-74000 with a stop loss below 69200.00

Alternatively, on the downside, crucial support is seen at 67450 and a break below only will change the direction, and prices may set new pressure. Downside level expected at 65000-63500.