Silver Price Outlook – Silver Continues to See Sideways Grind on Thursday

Silver Technical Analysis

The silver market has been somewhat sideways during the trading session here on Thursday as we continue to consolidate overall. We are looking at the $42 level as an area of importance, perhaps a little bit of a magnet for price. We had a very impulsive move to the upside. Now we have gone sideways for about six or seven sessions. In other words, we’re working off froth. It’s also worth noting that we hit the top of a channel. So, I think a lot of things came together to slow silver down.

With the Federal Reserve likely to cut interest rates next week, that is part of what’s driving this market. But it will also come down to the statement next Thursday also. The ECB has an interest rate decision on Thursday, as in this session, and that could have a certain amount of importance as well. If we pull back from here, the $40 level is like a floor, from what I can see. And of course, after that, you have the bottom of the channel, which is being supported by the 50-day EMA at the same time.

If we break to the upside, I anticipate that we’ll go looking to the $45 level. And if you look at the bullish flag, it’s about a $4 move. So, it actually measures a little bit above $45. Ultimately, this is a market that continues to see a lot of volatility, but more importantly, over the longer term, it sees a lot of upward pressure. I think that continues to be the case as silver is most certainly in a very strong uptrend.

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