Silver Price Outlook – Silver Continues to Consolidate

Silver Technical Analysis

The silver market continues to dance around the 50-day EMA, which, of course, is an indicator that a lot of people pay close attention to. We have been consolidating between $32 and $34, and currently see the $33 level, a massive magnet for price. All things being equal, this is a market that I think continues to see a lot of questions asked about the longer-term outlook. But right now, I think you’ve got a situation where traders are trying to sort out where the longer-term momentum goes and then just follows. We had the Federal Reserve meeting at the end of Wednesday, but it cleared nothing up. Classic Jerome Powell.

So, at this point in time, if you’re a short-term range bound trader, this is a great market for you. If you are more of a swing trader like me, you’re waiting for a breakout of this $2 range to start trading in whichever direction wins. I wouldn’t overthink it. I suspect this is a market that is sooner or later going to make a decision, but until then, it’s just back and forth. You could go into the whole negative correlation with the US dollar. You could go into interest rates. You could go into the fact that silver is an industrial metal. All of that’s true, but really at this point in time, it just looks noisy, and that’s the most important thing to keep in mind here, so trade it accordingly.

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