Silver Price Outlook – Silver Continues to See Similar Action on Tuesday

Silver Technical Analysis

Silver initially fell during the trading session on Tuesday but then turned around to show signs of life. That being the case, the market is likely to continue to see a lot of support underneath near the $32 level and a lot of resistance at the $34 level. As we have been in that range for a while now, I suspect that we have a situation where traders are just simply going to continue to buy the dip because we are in an uptrend despite the fact that we had that horrific sell-off, and it is probably no real argument here at the moment for shorting.

Although having said that, if we get a major risk off event, that could be the case. Remember silver, even though the market is a precious metal, it’s also an industrial one. So, people don’t necessarily run to silver in times of concern. They need good news to be buyers. They need good economic behavior.

So, I think at this point in time, what we’re looking at as a market for the last three weeks has given plenty of opportunities for range bound traders. I don’t see anything on this chart that tells me that’s going to change. However, if we break out of this $2 range, then typically technical analysts will extrapolate a $2 move in either direction. I still favor the upside. So short-term pullbacks offer buying opportunities, as you just pick little pieces up along the way. Short-term trading will end up being the way forward until something bigger happens.

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