Silver Price Outlook – Silver Continues to See Consolidation at Highs

Silver Technical Analysis

The silver market has fallen a bit during the trading session here on Tuesday, but really at this point in time, we are just hanging around and trying to sort out where we’re going next. The $65 level continues to be a major barrier that I think is probably more psychological than anything else. I don’t really think it matters beyond the fact that it’s a large round number. So, the question now is, are we going to go sideways and have another impulsive move? Right now, I would have to say that’s probably the likely scenario.

Key Levels and Market Noise

If we break down below somewhere around $57, then you have to rethink some things. I certainly recognize that silver has essentially been on fire for a while and therefore needs to take a little bit of a rest. And I suspect that’s most of what’s going on here. The market will more likely than not continue to be very noisy, but given enough time, we probably see at least an attempt to finally get above the $65 level.

I do think silver is reacting to an undersupply of silver, but I find it odd, and anybody who’s been trading for a while feels the same way, mainly because that’s a story we’ve been hearing for at least 20 years. So maybe the market finally caught up with it.

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