Silver Price Outlook – Silver Continues to See Consolidation

Silver Technical Analysis

The silver market has rallied a bit as we continue to see a lot of noisy behavior. Ultimately, this is a market that I think has been questioning itself after that initial push higher over the last several months and then the significant sell-off after the fact. The 50-day EMA offers support right around the $46 level, and I think that is your key there. As long as we can stay above $46, I think we have a real shot at being okay in this uptrend. But if we were to break down below the $45.50 level, also the 50% Fibonacci retracement from the impulsive move higher, then I think silver has a lot of problems at that point in time.

All things being equal, the longer we spend going sideways, the better off we’re going to be because it does suggest at least that the market is accepting price in this area after this big move. But I think we’re more or less in a holding pattern. Interestingly enough, I had been hearing nothing but silver comments. All of a sudden, that stopped. That might actually be the most bullish sign that I can think of.

It’s no longer at the forefront of everybody’s thinking, and therefore, we can just work off some of this excess quietly. We’ll just have to wait and see. A lot of this will come down to the Federal Reserve, the US dollar, interest rates, central banks around the world, and the potential EV or green technology demand going forward. Stay tuned, this is a market that will eventually have to make a decision.

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