Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market initially fell during the early hours on Tuesday as we got word that the Iranians and the Israelis agreed to a ceasefire and that had a lot of the safety trade disappeared. Now, that being said, silver is only so much of a safety trade and the reality is that it is also an industrial metal. So, we’ll have to question whether or not we have enough industrial demand to continue to push it higher, as we had seen previously.

Nonetheless, this is a market at least for my money looks bullish more than anything else, as we are testing the bottom of a consolidation phase right here at the $35.50 level, only to turn around and show resiliency yet again. I think that’s true with both metals, gold and silver, and one will almost certainly lead the other but ultimately, I do think you have a situation where there’s no real reason to short this market and even if we broke down below the $35.48 level, then we could drop to the 50 day EMA where I think even more value hunting would appear.

The US dollar, of course, dropping in value during the day, has helped silver as well. So, it’s more of a “risk on move” at this point. If we can take out the $37.50 level to the upside, we will probably go looking at the $40 level based on the measured move of the current range that we are trading in.

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