Silver Price Outlook – Silver Continues to See Range Play Out

Silver Technical Analysis

Silver has rallied a bit during the early hours on Friday as we are getting through non-farm payroll Friday, relatively unscathed in the markets, and silver continues to focus on the same area, namely the $33 level, as a potential magnet for price. And in fact, we’ve even touched that level but gave back some of the gains. By doing so, this is a market that I think is just killing time, trying to figure out where to go next. The market is likely to continue to see a lot of back and forth in this area as we build up a little bit of momentum.

The question of course will be which direction do we choose to break? And that’s essentially what I’m watching. I do think right now, at least we are basically in a $2 range between the $32 level on the bottom and $34 on the top. The market will continue to be a situation where you have to certainly just keep an eye on the fact that we don’t really have a whole lot going on here, unless you’re a short-term trader. Short-term traders are probably loving this market right now. And as long as we stay in this range, you have to think about it through the prism of a short-term chart.

Volume is a little lighter than normal, but that’s not really enough to get me concerned. But if we break down below the $32 level, the measured move is for a drop down to the $30 level. If we can break above the $34 level, then I think we will test the highs again, which are right around $35.50. The US dollar, of course, has a negative correlation to silver most of the time, but that doesn’t have to be the case, so don’t get sucked into that trade.

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