Silver Price Outlook – Silver Continues to See Support Below

Silver Technical Analysis

The silver market has shown itself to be pretty bullish yet again on Monday morning, as we continue to see that anytime the market pulls back, there are plenty of buyers. The most obvious spot on the chart for me right now is $70. I do not think that we’re going to break below it easily, or at least in the short term. And as a result, that might end up being the floor. It has held pretty steadily so far.

Shortage of Silver

If we give up $70, though, I could see a world where we drop all the way to $60 pretty quickly. That being said, there is still a major shortage of silver right now that traders continue to see as a potential problem. The market is more likely than not going to continue to be very noisy and very erratic, but I still think it’s going to favor the upside in general. Because of this, I look at short-term pullbacks as potential buying opportunities, but because of the massive amount of volatility you can run into in the silver market, it becomes a very dangerous place in times like these.

The best thing that could happen to this market is either a pullback or what’s going on right now, where we just simply grind sideways. Maybe the market has to learn to accept the idea of a $70 an ounce situation being normal. And if that’s the case, it might take some time. As long as we are above $70, I don’t think much has changed, regardless of how volatile we get, because we’ve seen a couple of really violent days and yet we’re still here, so that’s a good sign.

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