Silver Price Outlook – Silver Bounces on Thursday After Selling Off

Silver Technical Analysis

Silver has shown itself to be rather resilient during the trading session on Thursday, as we have fallen a bit only to turn around and bounce quite nicely. At this point in time, it looks as if we might try to form some type of hammer, which of course is a bullish sign. It’s also worth noting that the $32 level, an area that I’ve been talking about for several weeks, has been held as support. So that is something worth paying attention to. And in this environment, I think you have to recognize that the easiest money, at least in the silver market, has been going sideways.

So, range-bound traders will continue to look at this through the prism of going back and forth between the $32 level at the bottom and the $34 level at the top. Granted, there is quite a bit of noise along the way, but I also recognize that this is a market that has a lot of external factors as well. For example, the US dollar has a negative correlation with silver most of the time. It doesn’t have to every single day, but over the longer term, that does tend to hold somewhat true.

You also have interest rates in America, which can have a major influence on how silver is priced in dollars, which is what you’re looking at here. And then of course you have industrial demand and that’s been the real question for some time now. As the tariff wars continue to heat up, you have to have questions as to whether or not demand will pick up. As things stand right now, I think the market doesn’t know what to do with itself.

So, I recognize this as an area the market’s comfortable in. And I think we will continue to trade in this box. If we do break out of this box though, it moves about a $1.50 either higher or lower depending on the move and directionality of it. That being said, I just don’t see the momentum yet and I think short-term range-bound traders will continue to like this market.

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