Silver Price Outlook – Silver Continues to See Buyers

Silver Technical Analysis

The silver market has rallied quite nicely during the trading session here on Monday in the early hours, as we have now broken above the top of the shooting star from Friday. At this point, Silver looks as if it could go looking towards the $40 level, which, of course, is a large, round, psychologically significant figure that people will be watching closely to break above the $40 level could send this market much higher. But in the short term, think short term pullbacks offer buying opportunities. I have no interest whatsoever in shorting silver and I believe that the $37.50 level is going to continue to be a bit of a floor in this market.

Breaking down below that level could open up a move down to the $36.50 level, but it’s really not until we break down below there that I worry about the overall trend. All things being equal, this is a market that has been strong for quite some time. And now we’re just trying to work off some of that excess froth that we have seen multiple times in this market. After all, silver is a very volatile market and, of course, has very wild swings at times, but it does trend well.

And as we stand right now, we are most certainly in a longer term uptrend, so I think you’ve got to believe this is a market that eventually sees buyers come in on each and every dip. And that’s exactly how I have been playing it. I just don’t see that changing anytime soon. And I do believe it’s probably only a matter of time before we go looking to the $40 level.

For a look at all of today’s economic events, check out our economic calendar.