Silver tries to rise from the level of 22

10 February 2023 186
Silver tries to rise from the level of 22

Yesterday silver prices lost all the growth they had gained since the beginning of the week and fell to the support located at 22. Here, at the level of December lows and November highs, the bulls have a good opportunity to retake the initiative and return the positive dynamics to silver prices.

 

Despite the loss of all gains of the last two months, analysts are not trending to change their positive view of silver's prospects for this year. Thus, the Silver Institute, expects the average price level at $23 per ounce, which is 6% higher than the average price of 2022. The silver market will continue to strengthen under the influence of growing industrial demand for electric vehicles, as well as support for green infrastructure by governments around the world.

 

The experts at SaxoBank have even more impressive targets for precious metals prices. Silver could go as high as $30 per ounce, the last time the price climbed that high was almost 2 years ago, on February 1, 2021. SaxoBank analysts expect silver to surpass gold during the year due to the weakening of the U.S. dollar and bond yields, which have greatly impacted precious metals growth in 2022.

 

Problems with silver production are also bullish for the price of the metal. Peru, the world's third-largest silver producer, cut production last year by 7.6%, and difficulties with the operations at mines in the country remain in the current year.

 

The 22-22.2 range looks interesting to build up long positions in silver. Quotations can jump up from this and reach the growth targets of 22.45 and 22.6 quickly. Technical factors are also supporting the rebound now: the Stochastic indicator is in a very strong oversold area, but has already shown a reversal together with the crossing of blue and red lines, which is a signal for buying.

 

 

The following trading strategy option can be suggested:

 

Buy silver in the 22-22.2 range. Take profit 1 – 22.45. Take profit 2 – 22.6. Stop loss – 21.8.

 

Also, traders may use Trailing stop instead of a fixed Stop loss at their convenience.

This content is for informational purposes only and is not intended to be investing advice.

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