Silver Price Outlook – Silver Continues to See Support

Silver Technical Analysis

Silver has been somewhat choppy in early trading on Wednesday as we are basically in the middle of a range that we have been in for a couple of weeks. The $35.48 level on the bottom has been significant support, while the $37 level above offers a bit of resistance, perhaps extending to the $37.50 level. If we can break above the $37.50 level, and I think we do eventually, then there is a real shot that this market takes off to the $40 level.

Keep in mind that this is a market that has been strong before, so perhaps some of this is going to be a bit of a working off of froth, if you will. Volume is still relatively normal, although maybe a little lower than usual, as it suggests the mania in this market might be gone for the moment.

Nonetheless though, I think you have to look at each pullback as a potential buying opportunity if you’re a range bound trader. And then obviously if we do get that breakout, we should really start to take off. A breakdown below the $35.48 level opens up a move down to the 50 day EMA, which is closer to the $34.80 level. At that point, I would expect a little bit of dynamic support as well. This could be a longer-term “value play” if it does in fact happen. Ultimately, I have no interest in shorting silver, I think it is far too strong, and the US dollar falling is only helping that.

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