Silver Price Outlook – Silver Continues to See Range Trading

Silver Technical Analysis

The silver market has been fairly quiet in early Wednesday trading as we continue to hang out in the same consolidation area. For several weeks now we have been bouncing around $32 at the bottom and $34 at the top. This is a market that had plunged mercilessly down to the $28 level before rallying quite aggressively up to the $34 level. All things being equal, I think we’re just killing time trying to work off the froth from both sides of the trade, as there has been a lot of damage done to confidence in this market because of the massive volatility.

That being said, when you look back at the last four years, we’ve had a massive shot higher, a pullback, and then yet another massive shot higher, in a well-defined area. I do think that silver remains bullish overall, but short-term pullbacks are probably your best bets to get involved. If we can get a daily close above the $34 level, then it’s very likely that we go looking towards the $35.50 level and then possibly even higher.

If we break down below the $32 level, then we have to ask questions about the 200-day EMA underneath and whether or not it ends up being support. Right now, the market is one that short-term traders probably continue to take advantage of as it is so well-defined in its consolidation. Short-term charts are probably still the way to go, but sooner or later, we will get a big move.

For a look at all of today’s economic events, check out our economic calendar.