Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market has rallied pretty significantly during the early hours on Tuesday as we continue to see a lot of noisy behavior. The silver market currently trades between $32 and $34. And therefore, I think you’ve got a situation where range bound trading continues to be the major way forward. The $33 level has been a bit of a magnet for price and look through the prism of this consolidation. That makes a lot of sense.

All things being equal, I do think this is a market that will eventually have to determine where it wants to go over the longer term. And I’m particularly interested in watching the $34 level after the FOMC meeting, because that could give us a huge heads up as to where we are going to go longer term. In that environment, I would anticipate a move to the $35 level pretty quickly.

If we break down below the $32 level, then I think we’ll have to test the 200 day EMA, which is closer to about the $31.28 level, which of course is dynamic support. Ultimately, silver is highly sensitive to the US dollar. So, keep an eye on whether it’s weakening or strengthening. And of course, it is highly sensitive to industrial demand as it is an industrial metal as well. With that being said, silver looks bullish from a longer-term standpoint, but right now I think we’re looking for our next catalyst for momentum.

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