Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market initially did gap higher to kick off the trading session on Tuesday and then just simply fell. At this point in time though, the market looks as if it is finding plenty of buyers, so it can turn around and show signs of life. Ultimately, this is a market where if we can break above the $35 level cleanly, then I think we will go back to the highs and then eventually go much higher than that.

I think dips continue to be buying opportunities and based on the measured move of the previous consolidation area, we should hit that high fairly soon. There is a lot of upward momentum in silver at the moment and I just don’t see how that changes after the massive Monday breakout. The $33 level, for me at least, is the floor right now. We don’t know the ceiling yet, but once we break above $35.50, we could see silver run pretty far.

Keep an eye on gold because, although the two are not the same, they generally affect each other over the longer term. And gold looks fairly stable and fairly strong at the moment. So, with all of that being said, I like the idea of being long of the market. I think eventually each dip gets bought into and it’s not until we break down below the 200 day EMA that I would consider the trend being threatened. That’s about $3 below where we are currently. So, we are definitely looking pretty strong here.

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