Silver Price Outlook – Silver Continues to See Volatile Chop

Silver Technical Analysis

The silver market has fallen a bit during the early part of the trading session on Wednesday, showing signs of negativity. All things being equal, this is a market that I think given enough time eventually will find support near the $37.50 level. But really, I don’t even know that we fall that far. This is a market that’s been strong for quite some time. Although recently we’ve seen a little bit of volatility, at the end of the day, there are going to be questions about central banks around the world cutting rates and what does that do to precious metals?

While silver is a precious metal, remember it’s the least likely of the two to truly benefit from that reasoning alone, mainly due to the fact that it is also an industrial metal and economic growth, or lack of, will have a major influence as well. Regardless, I wouldn’t overthink it at this point in time. We’re in an uptrend that really hasn’t changed. We have formed a lower high, but we have not formed a lower low. So, this looks a lot like consolidation to me. If we can break above the high of the Friday candlestick of last week, then I think at that point in time, we will go looking for a challenge to the $40 level.

Anything below $37 does have me thinking that we’re in the midst of a bigger change, but right now, nothing on this chart suggests that’s going on. I think we’re just going to see a lot of bouncing around, and I will pay close attention to that $37.50 level, which is being backed up by the 50-day EMA at the moment in order to find support.

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