Silver Price Outlook – Silver Continues to See Buyers on Pullbacks

Silver Technical Analysis

Silver initially pulled back just a bit during the trading session here on Thursday only to turn around and show signs of life. The market had fallen rather rapidly, now that it’s starting to see a little bit of a bounce, one has to question whether or not we actually get a significant pullback, or do we just get some type of consolidation? Either outcome makes sense for the bullish trader because quite frankly, you can kill off excess froth and excess momentum either by having a nice pullback or time, in other words, going sideways. We are at the top of the channel, so I still believe that we could get a little bit of a pullback, but that pullback to me ends up being a nice buying opportunity, especially near the $40 level.

All things being equal, this is a market that I think given enough time, we’ll have to maybe work off some of this massive moves that we have recently seen to the upside. But given enough time, I think we do go higher. I don’t have any interest in shorting silver. And even if you told me that we were falling tomorrow, I wouldn’t get on the short side. I believe in looking for value here. I think most of the market participants are probably thinking the same thing. It is stretched. I don’t want to chase it. But a nice pullback or at least sideways action, like we have seen a couple of times here recently in the past, is exactly what the doctor ordered for this market.

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