Silver Price Outlook – Silver Continues to See Consolidation

Silver Technical Analysis

The silver market has fallen pretty significantly during the trading session here on Wednesday, but it is starting to recover mainly due to the fact that GDP in the United States came out weaker than anticipated, which, of course, has people very interested in owning precious metals. And in fact, in the few minutes that occurred after that announcement, we’ve seen metals absolutely rip to the upside. This is true in both gold and silver at this time.

So with that being the case, I like the idea of buying this dip and I think we will probably continue to see a lot of back and forth at the moment. And with that being the case, I think we have to look at this as a market that, quite frankly, is trying to work off some of the froth here right around the 50-day EMA. And that, of course, is an indicator that a lot of people will be paying close attention to.

I have no interest whatsoever in trying to get too cute here, but I do think that if we can break above the $34 level, silver more likely than not goes racing towards the $35 level above. Ultimately, this is a market that given enough time, I think reaches those highs and eventually breaks out. And that’s especially true if the US dollar continues to suffer in the currency world. At this point, silver remains somewhat bullish, but there is a lot of work to be done in this area.

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