Silver Price Outlook – Silver Continues to See Volatility

Silver Technical Analysis

The silver market has dropped fairly significantly during the trading session on Friday as the markets continue to see a lot of questions asked about the US dollar, about demand, about risk appetite, et cetera. So, with that being said, the $35.50 level is an area that I’ll be looking very closely as it has held as support quite nicely multiple times. As long as we can stay above there, we are still in consolidation, and you still have to look at the upside for your next move. On a breakdown below the $35.50 level, the market is likely to really turn quite a bit negative, perhaps reaching down to the 50-day EMA.

Ultimately, market participants will continue to look at this as a potential buying opportunity as well, but anything below the 50 day EMA, and then I think you have serious problems. If we can break to the upside and clear the $37.50 level, it looks very likely to open up the door to a $40 move. Ultimately, though, I think we have a situation where buying on the dips and just trading in this range is probably what we’re looking at here over the short term. Silver has been very bullish. It’s been straight up in the air and then now it’s going sideways to work off some of that excess froth from the previous move, and the huge rally. At this point, I have no interest in selling.

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