Silver Price Outlook – Silver Continues to See Buyers

Silver Technical Analysis

The silver market has rallied a bit during the early hours here on Monday, but it does look like it’s starting to give up some of the gains and that’s not a huge surprise. We are a bit stretched at the moment. So why wouldn’t it? And with that being the case, I think you have to look at this as a potential pullback just waiting to happen. That pullback, though, should end up being a nice buying opportunity, all things being equal. After all, we just blasted through a major resistance barrier and now it looks like we are ready to continue to go higher over the longer term, but we do need to pull back in order to catch more buyers. The question now is where can we go?

Well, based upon the previous consolidation area, I had a target of $40, and we almost got there overnight. That being said, I do expect $40 to be targeted eventually but I would not be too surprised at all to see us pull back towards the $38, maybe $38.50 level before finding buyers and bouncing again. It’s on that bounce that I’m willing to get involved, maybe like on an hourly chart or something.

I don’t really want to get too cute here and try to get aggressive up at these higher levels. I do think that Silver pulls back to find some type of traction, we’ll just have to wait and see. Keep in mind that the US dollar has a major influence on what happens here as well, and if it starts to strengthen, that may cause the pullback in silver at least temporarily.

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