Silver Price Outlook – Silver Continues to See Upward Pressures

Silver Technical Analysis

The silver market has found itself a little bit negative in the early hours of Wednesday as we continue to threaten a breakout but don’t quite have the momentum to do so. The $37.50 level is an area that I think a lot of people are watching very closely and if we can somehow get above there, then it opens up a move to the $40 level based on the consolidation and measured move from the last couple of weeks. The $35 level is the floor of this area and it’s worth noting that the 50 day EMA has crossed above there, so now we have support above there as well.

This has been a buy on the dip type of situation for a while. And with the US dollar taking it on the chin, it certainly helps over, but there are also questions about whether or not there will be a lot of industrial use as the jobs market in America remains fairly resilient. Ultimately, though, what we’ve seen over the last couple of weeks has been the markets trying to work off some of the excess froth from the massive shot higher that we had seen previously.

That being the case, I think it’s probably only a matter of time before we end up reconciling this noisy area with a move higher. But I also recognize that you need to be cautious because silver is always a volatile asset and of course can move very rapidly on the latest headline. So, it’s not a market that you want to pile into, but it is a market you want to be thinking of to the upside in.

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