Silver Price Outlook – Silver Continues to See Buyers on Friday

Silver Technical Analysis

Silver has rallied quite nicely during the early hours on Friday as we are now testing the $43 region and, perhaps more importantly, the top of the overall up-trending channel that we had been in previously. Short-term pullbacks at this point in time open up the possibility of value hunting, especially near the $42 level. Now the question is, will we break above the top of the channel? Because that does happen when things get impulsive.

You could also make an argument that the market has recently formed a bullish flag, and you could look at this as a market that just broke out. And if that’s the case, then silver would have a measured move based on this flag of roughly a move to about $46 above.

Certainly, at this point, I just don’t see how you short silver. If we do pull back, I think it ends up being a buying opportunity and therefore you’re looking for value going forward. Silver has been in a very strong uptrend for quite some time. You should pay attention to the US dollar, as that could have a major influence as well, as there is a massive negative correlation between silver and the US dollar. With this, I think you’ve got a scenario where any time you get chance to buy silver cheaper, you probably are going to be looking for it as an opportunity in the silver markets.

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