Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market has rallied a bit during the trading session on Wednesday as we continue to see buyers jump into this market on dips. And at this point, I am paying close attention to the $37.50 level underneath as it was a previous resistance barrier and a very difficult one to break. Market memory comes into the picture, and I think that opens up a significant potential for a bigger move. I think at this point in time, the $40 level is something that you need to watch out for. And I do think that makes quite a bit of sense, as the measured move from the previous consolidation area did suggest that.

So, the volume has shown quite a bit of upward momentum as well, even though it has slowed down over the last couple of days, it’s still fairly elevated. I have no interest in shorting silver. And I think if the US dollar falls, it could help this market as well. So, keep an eye on the US dollar index. The US dollar is softening a little bit in the early hours. So, I think that might be part of what’s going on here as well.

Regardless, this is a market that has a lot of momentum and is very bullish. So at this point in time, you have to just assume it’s going to continue to maybe work off some of the excess froth in this area and then eventually break higher again. Again, I have no interest whatsoever in trying to short silver at this point. It’s obviously very bullish.

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