Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market initially gapped higher to kick off the trading session on Tuesday, only to turn around and fall significantly. By doing so, it attracted enough attention once it filled the gap to turn things around and rally again. Silver most certainly looks as if it wants to go higher. And you can see that we had previously been forming a bullish flag. So, the extended move based on the bullish flag will have this market, in theory at least, aiming for right around $46.50.

Whether or not that actually happens remains to be seen, but that’s the measured move, if you will. And these things do have a way of being self-fulfilling. Regardless, this is a market that will be volatile over the next 24 hours as we have the Federal Reserve interest rate decision out there hanging around in the afternoon on Wednesday and that will obviously have a major influence on the US dollar, which typically will have a major negative correlation to silver.

There are also questions about what the global economy is doing, and that is important because if it is strong, then silver should do fairly well. Regardless, though, this is a market that I have no interest in shorting. If it does pull back, I’ll look to see if it bounces like it did early during the trading session on Tuesday to take advantage of that. The $40 level is probably your floor in the market at the point of this recording, with the 50-day EMA racing towards it, giving it even more credence.

For a look at all of today’s economic events, check out our economic calendar.