Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market initially fell a bit during the trading session on Friday, breaking below the 50 day EMA, but then turned around to show signs of life again. By doing so, this suggests that the market is trying to find its floor somewhere near the 50 day EMA, which is basically where we’re at. And it’s also right here at the previous cluster that we broke out from. Can we find support here?

I do think that there are enough orders in this area and the fact that Friday has shown the non-farm payroll announcements being horrible, coming out about half of what was expected as 73,000 jobs were added and 106,000 were expected. So that has put a little bit of a beating on the US dollar and that of course held silver in general. With this, the market looks very likely to continue to see that negative correlation play out. And if the US dollar continues to shrink, that should help silver.

On the other hand, if we break down below the $36 level, then I think we’re in a little bit more trouble. And you can make that argument due to the fact that if there are less jobs being added in the United States, then that means there might be less industrial demand for silver. We’ll just have to wait and see. If we can break above the $37.50 level, then that would be extraordinarily bullish for silver, but we will have to wait and see.

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