Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

Silver markets have initially fallen during trading here on Monday to test the crucial $35.48 region, only to turn around and show signs of life again. This is a market that has been strong for some time, but over the last couple of weeks has spent the better part of its energy trying to consolidate and work off some of that excess froth. I think, really, at this point in time, what this chart is telling me is that we are trying to find a reason to go higher. And if and when we do, breaking above the $37.50 level will be your signal that the uptrend is in fact continuing. If we were to break down below the $35 level, it could change quite a few things, at least in the short term, opening up the possibility of a test of the crucial $33 level.

Ultimately though, I think this is a market that is more of a buy on the dips type of situation. And in the meantime, if you are a range bound trader, you probably love this setup as it is fairly clearly defined for a back and forth situation. Nonetheless, I don’t really have any interest in shorting this market at this point in time. I am a buyer of dips. I take profit quickly, but I recognize that eventually we are going to get that impulsive candlestick to the upside to really send silver flying. Once that happens, $40 is a real possibility.

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