Silver Price Outlook – Silver Continues to Look for Bigger Move

Silver Technical Analysis

The silver market has drifted a little bit lower during the trading session on Friday in the early hours, but it looks like there’s plenty of support underneath. After all, the $37.50 level has been supported multiple times as well as has been resistant. And therefore, it makes a lot of sense that people will be finding a certain amount of interest in that area. Furthermore, we have the 50 day EMA sitting below the $37.50 level. So that offers plenty of support as well. If we drop a bit from here and bounce, I think traders will try to push the silver market back down towards that support level, only to turn around and reach towards the $39 level.

If we can break above the $39 level, then it’s likely that we could go looking at the $40 level. If we can break above the $40 level, then it opens up the possibility of a much bigger move to the upside. Ultimately, I don’t have any interest in shorting silver, but I also recognize you don’t necessarily want to jump in with a huge position. Silver is very sensitive to the US dollar, as there is a massive negative correlation and of course we have to wonder about the global economy. Silver is an industrial metal, so if the economy starts to slow down, that could work against it as well. Regardless, both gold and silver look fairly bullish at the moment, and I think that continues, as one generally will lead the other in the precious metals markets.

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