Silver Price Outlook – Silver Continues to See Same Area as Important

Silver Technical Analysis

The silver market has shown itself to be a little bit soft in the pre-market hours here on Tuesday, as the $37.50 level continues to offer a bit of noise. In this case, we are seeing resistance again, as it has been important, not only from a resistance standpoint back in June, but also a support standpoint in July. The question now of course, is which direction are we going in?

Despite the fact that we’ve seen a pretty significant pullback and we are seeing a certain amount of resistance, I still lean to the upside with the 50 day EMA underneath offering a bit of support. Keep in mind that silver is highly sensitive to the US dollar and as the US dollar starts to strengthen, it can put a little bit of weight on the silver market. That being said, it doesn’t necessarily mean that both can go up at the same time.

We are in a situation right now where people are trying to figure out exactly where the global trade situation is going and that has an influence on silver as well, as it is an industrial metal, not just a precious metal. So, I suspect what we might be doing is possibly forming another consolidation phase in this area that we’d previously been trading in back during the month of June. I do anticipate that sooner or later we will break higher and break above the $37.50 level, and on a daily close above there, I would anticipate you would start to see other traders coming into the market.

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