Silver Price Outlook – Silver Continues to See Noise

Silver Technical Analysis

The silver market has been back and forth in short-term choppy behavior. During the early hours on Thursday, as we continue to see a lot of noisy, nonsensical trading just above the $37.50 level. This is an area that I think a lot of people will be paying close attention to, as it was previous resistance, and then became support. We also have the 50-day EMA in this neighborhood, and that could come into the picture to offer a little bit of support as well. Ultimately, this is a market that I think given enough time, we’ll have to make a bigger decision, but it certainly looks as if we are trying to rally from here.

And if we can, in fact, rally from here, we could go looking towards the $40 level over the longer term. I would point out that the $39 level is probably going to offer resistance as well. So that’s going to be a little bit of a barrier. But ultimately, I think you’ve got a scenario where eventually the buyers probably prevail. We’ll just have to wait and see what people think that the Federal Reserve may or may not do. The speech by Jerome Powell on Friday will be a major factor. So do keep that in mind.

The speech, if it sounds like it is even remotely dovish, that probably gets people excited and they are more likely than not to start buying gold and silver. So, with this being the case, I think we’re in a little bit of a holding pattern. I think we will continue to hang around the $37.50 level in the short term. But eventually, I would expect to see some type of push to the upside. If we break down below the $36.50 level, then we could see a drop towards the $35 level. But ultimately, I think that is very unlikely in this environment.

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