Silver Price Outlook – Silver Continues to Look for a Floor

Silver Technical Analysis

The silver market has found itself to be a little bit negative in the pre-market trading on Wednesday as Asians and Europeans continued to short the market, but it does look like it’s finding a little bit of support near the $37 level, and perhaps just as importantly, near the 50-day EMA. If the market can recapture the $37.50 level, it gives silver a fighting chance to continue rallying. Silver is going to continue to be a bit of a mess though, because it’s so highly negatively correlated to the US dollar. Of course, we have a lot of noise out there when it comes to the US dollar at the moment, as people are trying to sort out what Jerome Powell is thinking about interest rates.

So, if we continue to see a lot of noise in the US dollar, we should in turn see a lot of noise in silver. Longer term, this is still a bullish market at the moment, and I don’t necessarily want to get short of silver, and I recognize that we now have significant resistance at the $39 level. So, I think the upside is somewhat muted as well. The early part of the session looked fairly ugly, but the fact that we are bouncing has me eyeballing that $37.50 level for a potential signal to get long. If we fall from here, then I think the $36 level more likely than not will be your next support region for a potential bounce in the silver market.

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