Silver Price Outlook – Silver Continues to Grind

Silver Technical Analysis

The silver market has gone back and forth during the course of the trading session here on Wednesday as we are trying to determine whether or not we can stay above the $37.50 level, which is rather important. This one’s the bottom of the previous consolidation area and previous resistance. So, I think ultimately this is a situation where the market is going to continue to see a lot of questions out here as to whether or not silver is going to continue to stretch to the upside.

The 50-day EMA, of course, offered support here on the way back down. So, I think you have to look at that very closely as it snakes its way higher to the upside. The market is likely to test the $38.50 level. If we can break above there, then the $40 level gets targeted.

If we break down below the bottom of the 50 day EMA, then it opens up the possibility of a move down to the $35.50 level. That is an area that previously has been supported. So, all things being equal, this is a market that I like buying dips in, but you do need a little bit of help from perhaps the US dollar falling or the idea that global trade is going to start picking up.

There are also the external pressures and influence of the gold market, mainly due to the fact that if the gold market rallies given enough time, silver would probably follow right along one way or the other. So, with that being said, I am bullish, but I also recognize that we are going to have a lot of choppiness. So, pullbacks are probably your friend here.

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