Silver Price Outlook – Silver Continues to Bounce Around

Silver Technical Analysis

Silver has rallied a bit during the early hours here on Monday, but we are still very much in a consolidation area as we have been for several weeks. The $32 level underneath is significant support, with the $34 level above being significant resistance. As long as we are stuck in this range, I think this remains a back and forth short term opportunity for those who are range bound traders. And in fact, this is probably one of the more ideal markets for that type of trading. This is a market that seems to be looking for some kind of information to finally get going in one direction or the other.

With that being said, I think you have a scenario where traders are also looking at this through the prism of a market that is waiting for a little bit of clarity when it comes to overall demand because obviously silver is not only a precious metal, but it is also a daily industrial metal that people pay close attention to as well.

Whether or not the demand picks up remains to be seen. But I do think you have a situation where traders are more likely than not going to be looking for some type of breakout to actually get big with their position. Again, short-term range bound traders do like this setup. So, we’ll have to see how this plays out. For now, I still favor the upside, but I don’t expect anything big in the short term.

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