Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market had initially pulled back just a bit in the early hours of Monday but had turned around quite nicely to show signs of life. The $37.50 level underneath continues to offer support as we have seen not only here on Monday, but on Friday. And we also have the 50 day EMA racing towards that area that could offer support as well. The $39 level above is a bit of a target as it is a large, round, psychologically significant figure. And it’s also an area where we’ve seen some selling pressure.

Nonetheless, recently we have been more sideways than anything else. So, I do think that we’re trying to build up the necessary momentum to go higher. If we turn around and break down below the 50 day EMA, then we could see this market drop to the $36 level. All things being equal, I believe silver is a very bullish market, but it’s also a market that will continue to be very noisy as is typically the case.

Silver has a massive negative correlation to the US dollar. So, pay attention to that as well. But ultimately, it’s an industrial metal and you need to pay close attention to that because if the global economy is starting to slow down, that could be a little bit of a drag on the price of silver. It also does tend to move in the same direction as gold. So, pay attention to the gold market. Both, I believe, are bullish. I’m not looking to short the markets anytime soon, be it gold or silver, but I do believe that dips offer value that you should be watching.

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