1.20 Silver Morning Analysis: Volatile at Highs, Still Solid Foundation for Uptrend!

This morning, silver didn't surge aggressively; it oscillated around $93.6. After reaching a high of $94.7 yesterday, some funds took profits, causing a slight pullback, but the overall strength remains unchanged.
Why can it stay steady? The core reason is the powerful supply and demand gap! The demand for silver has surged in industries like photovoltaics and new energy vehicles. Global silver shortages have continued for five years, with inventories still at historic lows. Silver is not only a precious metal that benefits from safe-haven sentiment but also an industrial necessity. The dual attributes provide strong support.
Today, focus on two key levels: first, resistance at $94-$94.5; breaking through this level will likely push it toward $96. The support levels are $92-$93; below that, $90 is a critical line of defense. Holding this line can keep the bulls in control and allow further upward movement. Also, keep an eye on gold and the dollar to avoid being influenced by short-term volatility.
In terms of trading, avoid blindly chasing highs! If the price stabilizes around $92-$93, consider light long positions. If it encounters resistance above $94.5, you can try short positions with small size, but be sure to set stop-losses, as silver tends to be more volatile than gold.