Silver Price Outlook – Silver Continues to Find Buyers on Dips

Silver Technical Analysis

The silver market has gone back and forth during the trading session on Tuesday in the early hours. I think at this point, you have to look at this as a “buy on the dip” market. That’s certainly how traders treat it on Tuesday and pretty much every other day. So, at this point, it looks like $48 is an area that is attracting a lot of attention. But keep in mind that we are near an area that has failed twice over the last several decades. And it is worth noting that every time we get close to $50, silver collapses.

I don’t know if that’s the case this time, but it is something to keep in the back of your mind. I’m sure there are a lot of traders out there who are probably hesitant to truly throw a ton of money into this market, with it being so elevated. Now, that being said, I think short-term pullbacks do offer those buying opportunities. And I’d be particularly interested closer to the $46 level.

If we rally from here, the most obvious target will be $50. But again, like I said, $50 has been the ceiling for a long, long time, going back to about 1979. So that’s how extended we are at the moment. If the US dollar really starts to take off, that could cause some damage to the silver market. We’ll just have to wait and see. And it is worth noting that the US dollar is becoming increasingly stubborn against a lot of other currencies. So, that is a correlation to pay attention to. As things stand right now, there’s no way to short silver. You just can’t do it. It’s just far too strong.

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