Silver Price Outlook – Silver Continues to Consolidate on Friday

Silver Technical Analysis

The silver market has gone back and forth during the trading session here on Friday as we continue to dance around the 50-day EMA and, of course, continue to dance around in the same consolidation area that we’ve been in. The $32 level underneath is massive support, while the $35 level above is massive resistance. This makes the $32 level very interesting because it becomes a magnet for price as it is fair value. You can see that we tried to get there during the session on Friday, but pulled back a bit, but the 50-day EMA itself is a bit of a magnet as well.

At this point in time, I just don’t see any momentum one way or the other. So, I think we will stay in this $2 range for the time being and range bound traders will love this market. Traders who go back and forth on short-term charts have been cleaning up in the silver market. And I think that more likely than not will remain the same until we get some type of movement on tariffs or negotiations. That being said, the Americans and the Chinese are meeting over the weekend.

So that, of course, is something that could move the markets quite drastically as well. All things being equal, if and when we break out of this $2 range, that gives you a measured move of $2 in whichever direction we break. But I think you need to be cautious because volatility is most certainly a major problem with markets at the moment and silver is almost always one of the more volatile ones. So therefore, you have to be very cautious.

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