Silver Price Outlook – Silver Continues to See Buyers

Silver Technical Analysis

The silver market has broken above the $51.50 level to show signs of strength again, and as a result, it looks like silver is going to make a run towards the $54 level. What I am concerned about in this market, though, is the fact that volume is much lower than it was previously, and with that being said, I think you’ve got a scenario where traders will look at this as a market, although bullish, one that you need to be very cautious with due to the fact that traders are going to wonder who’s left to buy this. The $50 level certainly looks like it could be an area that ends up being a floor. It certainly was over the last couple of days.

With this being said, I think you’ve got a situation where traders are going to look at that $54 level. And if we can break above there, then it will just kick the next leg off in the silver market and perhaps send it towards $60. Short-term pullbacks, I think, open up the possibility of testing that $50 level. If they break down from there, then the $47 level is the next floor. Anything below there would be disastrous for silver. And although I don’t see that happening right now, the lack of volume is the one thing that really concerns me in this market.

Pay attention to the US dollar. Sometimes that can have a negative correlation to silver, but markets are moving in a somewhat unique way at the moment. So more than anything else, you’re going to watch momentum and volume.

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