Silver Price Outlook – Silver Continues to Look for a Bounce

Silver Technical Analysis

The silver market has gone back and forth during the trading session here in early Monday trading. But what I would point out is that the market is trying to find its floor. We plunged on Friday, but since then have had a trade deal between the United States and the European Union, which while firming the US dollar, which is typically negative for silver, it does suggest that perhaps there may be more demand for silver from an industrial usage standpoint. So, I don’t think this is going to be the final nail in the coffin, as it were, for the trend.

The $37.50 cents level underneath current trading is a major support level that I think will continue to be respected. So, I’m definitely going to be watching that. If we pull towards that area and then bounce, I’ll be very interested in buying. On the other hand, though, we may not even drop that far, and we may look to the upside. The upside is, of course, going to be paying close attention to the $40 level that we tried so hard to get to but failed.

The $40 level, of course, is a large, round, psychologically significant figure that a lot of people will think of as a good headline. If we can get above the $40 level, then I think you’ve got a potentially explosive move to the upside. But I don’t think that’s going to be easy to do. If and when it does happen, I think it’s your next leg higher.

It’s not a huge surprise right now to see the market going back and forth because we have rallied so strongly since the bottom in April. Of course, this is typical behavior, especially considering that we are in the middle of the summer and volume could be a bit of an issue at times as well. But either way, I like the idea of buying dips. This is a bullish market. I’m not going to fight the trend.

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