Silver Price Outlook – Silver Continues to Scream Higher on Monday

Silver Technical Analysis

The silver market has shown itself to be rather strong during the early hours of Monday as traders continue to look at silver through the prism of a very strong market. At this point, one would assume that the next major support level is back at the $40 level, which of course had been so difficult to pierce, but on Friday we blew right through it. So, there has been a jump in volume and that typically is a good look for a market. And you would anticipate that people will continue to want to try to get into this market and on dips, those who were short can probably cover their positions and those who have missed on the trade will be interested in getting involved to chase the momentum we see now.

The market will continue to probably take its cues, I imagine, from interest rates, expectations from the Federal Reserve, that type of thing. With that being said, the market is in somewhat of a channel, so keep that in mind, but we’re not going to reach the top of that channel for something like another $1 higher. So, it’s possible that we may continue to see this blow off pattern and then a pullback. That pullback almost certainly will be looked at as some type of value play that traders, I suspect, will be keen to take advantage of if they get that opportunity.

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