Silver Price Outlook – Silver Continues to See Noise

Silver Technical Analysis

The silver market has rallied pretty significantly during the early hours on Monday, as we are now threatening the 50 day EMA. The 50 day EMA being broken to the upside opens up the possibility of a move for silver to reach the $33 level. The $33 level is a major area of confluence that traders have been paying attention to multiple times. If we can break above there, then it opens up a move to the $34 level.

Underneath we have the $32 level offering significant support. And breaking down below that opens up a move down to the 200 day EMA, which sits just above the $31 level. All things being equal, I think we continue to consolidate, and it does make a certain amount of sense where we maybe go back and forth and trying to understand where the next big move comes from.

After all, the US dollar is negatively correlated to silver most of the time. But we also have to worry about industrial demand. So, I think there is a lot of different attitude influencing noise out there that I think continues to keep traders somewhat frozen. And therefore, it wouldn’t surprise me at all to keep silver relatively sideways. This might be the case for a while, as we have seen so much volatility that the market might just need to catch its breath for a while. Because of this, I am focusing on short term moves.

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