Silver Price Outlook – Silver Continues to See Range

Silver Technical Analysis

The silver market has fallen fairly significantly during the session here on Friday, but it does look like it’s trying to hang on to the same support level that we have been at for a while now. And as a result, as long as we can stay above the $32 level, I think you have a situation where silver probably does okay and just goes back and forth as range bound traders continue to take advantage of a fairly well-defined support level, as well as a resistance level.

The area around $32 has been tested multiple times and it has held. Because of this, think you’ve got a situation where traders continue to look at this as a potential bounce that they can take advantage of, maybe just for short-term trades, but certainly it seems to be there. With that being the case, I like the idea of buying silver, but I also recognize that you need to be somewhat cautious. It’s a very volatile and noisy market at times.

The $33 level above seems to be a bit of a fair value and the $34 level above there seems to be your short term ceiling. As things stand right now, I am a buyer of silver, but I also recognize that silver, if it breaks below the candlestick from the Thursday session, probably plunges quite drastically, perhaps kicking off a leg lower, as we would challenge the 200-day EMA and then possibly even the $30 level after that. With that, I am looking for a continuation of what we’ve seen.

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