Silver Price Outlook – Silver Continues to See Support

Silver Technical Analysis

The silver market has gapped a little bit lower during the open here on Thursday, as we continue to see massive amounts of momentum in this market. Ultimately, this is a market that is trying to figure out whether or not the momentum is going to continue to see increases from time to time, or if it’s a situation where the market will eventually have to recognize gravity. To be honest, in the 20 years or so that this market has been analyzed, there have only been a couple of times when markets have behaved like this.

One example would have been the crude oil market when it almost hit $150 back during the Great Financial Crisis. It is suspected that before it is all said and done, silver may behave like that. Right now, however, this is a market that is showing no real signs of that behavior, and short-term pullbacks could continue to be buying opportunities in a market that obviously has a lot of momentum.

Key Support Levels and Trend Structure

The $60 level would be massive support, right along with $55. At this point, it is really not until the market breaks down below $55 that there is even a discussion of whether or not the trend is over. Because of this, the market continues to be viewed as buy-on-the-dip.

The market is also looking very much like one that needs to take a bit of a break. Another possible outcome could be sideways action. That occurred back in October all the way through the end of November, and another one of those timeframes could be coming. That is not bearish; that is the market taking a rest. Ultimately, silver looks like it is going higher.

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