Silver Price Outlook – Silver Continues to See Buyers

Silver Technical Analysis

The silver market initially did start to fall a bit during the early hours on Friday, but then rallied rather significantly as the jobs report in the United States came out much weaker than anticipated, adding only 22,000 jobs instead of the expected 75,000. For what it’s worth, the unemployment rate did rise 0.1%. But that was expected. At this point, the markets are running to the metals, gold has absolutely exploded and I think some of that is carrying over into the silver market. We are still a little overbought. And at this point, I wonder if silver is really going to take off or if it’s going to go sideways.

Non-farm payroll Friday does tend to be a very choppy affair. So, you can’t read too much into the initial reaction. But right now, it certainly looks as if silver is rallying, perhaps based on the idea of interest rate cuts coming out of the Federal Reserve being significant at this point. With that being the case, I think we have to look at short term pullbacks as potential buying opportunities. And if we break down below there, the opportunities will find themselves being shown at the $40 level. I have no interest in shorting somewhere at the moment, as we are so bullish, but we are pretty much at the top of a channel. So, I still think that despite the fact that this is a bullish market, it is going to be prone for a little bit of sideways action.

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