Silver Price Outlook – Silver Continues to Bounce Around

Silver Technical Analysis

The silver market has gone back and forth during the course of the trading session as we continue to see a lot of noisy behavior. But ultimately, I think this is a market that is at the top of an overall consolidation range. We’ll see how this plays out because the $37.50 level is a major resistance barrier. If we pull back from here, then the $35 level is a major support level. The 50-day EMA is racing toward that. So, I do think that if we pull back to the $35 level, there will be a lot of value hunters out there willing to get involved in silver because $35 has been so important in the past.

Silver, of course, is going to pay close attention to the US dollar as it has a major negative correlation with the US dollar index. So, if we get the US dollar selling off, then it’s likely that silver will rally. On the other hand, the US dollar rallying could bring silver down. And that’s kind of what we’ve seen here over the last couple of months. And now, it looks like we are at least trying to break out to the upside. We just don’t have momentum. We had seen a pretty significant shot higher to get to this level. Now it’s all about patience.

A break above the $37.57 level for me is the trigger to get long and start aiming for the $40 level. A breakdown below the $35 level, although I don’t expect it, could send this market down to the $33.50 level, and that is something that you need to keep in the back of your mind. Shorter term traders will continue to trade this range, probably more of a buy on the dip type of attitude. So, you could short it, I suppose, if that was your inclination. But really, you’re probably better off looking for lower prices to step in and play that range to the upside.

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