Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market has ended up pulling back a bit in the early hours here on Thursday as perhaps we aren’t quite ready to break above the crucial $40 level. The $40 of course has been resistance based on the psychology of the number more than anything else from what I can see during the Wednesday session. The Wednesday session ended up forming a bit of a shooting star, so that is a signal that perhaps we are running into exhaustion and I think a lot of people are going to look at it through that prism.

If we can break above the $40 level, that’s obviously a very bullish sign, but I think it’s just as equally likely that we pull back just a bit here in order to offer value for traders to take advantage of. If we were to break down from here, the $37.50 level is an area that I’d be watching very closely, as it had been previous resistance, it should now be support.

On a breakout above the $40 level, the measured move of the latest consolidation would be for a move to the $42.50 level, which is not a stretch by any means. And I do think that eventually we will probably make that move. Pay close attention to the US dollar, because if it starts to fall again, that will help silver as well. With that being said, I like the idea of buying dips as they occur. But now the question is whether or not we’ll actually get a steep enough dip to make it a true value play.

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