Silver Price Outlook – Silver Continues to See Support Just Below

Silver Technical Analysis

The silver market is a little bit choppy during the trading session here on Thursday as we are trying to figure out what to do with the $38 level. We had recently seen an explosion to the upside and then a pullback that’s almost wiped out that explosive candlestick from the breakout above the $37.50 level. The $37.50 level is an area that was significant resistance previously. So, one would assume, at least based on technical analysis, that there should be support on the way back down. So far, it has held up. So, it’ll be interesting if that remains the case. Ultimately, I think you’ve got a situation where traders will look at this and determine whether or not we can truly rally.

But I would be very interested in a break above the neutral candlestick from the Wednesday session as a sign that silver is starting to pick up momentum again. If we’re going to break down from here and let’s just say we break down below the $37.50 level, then I think we’ve got plenty of support all the way down to the $36 level. So, I would probably just sit on my hands at that moment. Keep in mind that the US dollar is strengthening in general, and that does tend to work against silver, although it doesn’t have to. It’s just one component.

So, pay attention to the US dollar index and of course pay attention to gold because gold and silver do tend to move in the same overall direction given enough time, although gold is extraordinarily quiet at the moment. Maybe that’s the theme here. We have broken through resistance and now we’re just going to kill time until we have another reason to go higher. Either way, I don’t have any interest in shorting.

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