Silver Price Outlook – Silver Continues to Find Buyers on Dips

Silver Technical Analysis

The silver market initially fell a bit during the trading session here on Tuesday, only to turn around and show signs of buyers jumping in and getting aggressive. So, with this being said, the market is certainly going to be a scenario where I think traders continue to chase momentum. The momentum obviously has been very strong to the upside, and we are exploding higher over the longer term. But I think short term pullbacks are probably your entry into the market. And that’s exactly how things played out on Tuesday. The $35.48 level is an area where we had seen a lot of resistance previously.

So, I do anticipate that we may have a little bit of a market memory there offering buyers an opportunity to get involved. To the upside, I would anticipate that silver probably goes looking to the $40 level eventually, but I’m also paying close attention to the $37.50 level because it is an area based on a measured move that we could be targeting. Silver rarely gets above the $35 level, so this is a very interesting turn of events.

The last couple of times we have seen it break above $35. It really took off and I don’t see that being any different here. But again, you don’t want to chase the trade. Silver is very volatile and can be a very expensive market to be wrong in. So, you’re looking for value that you can take advantage of. And again, that comes in the form of pullbacks.

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