Silver Price Outlook – Silver Continues to See Volatility

Silver Technical Analysis

The silver market has pulled back just a bit during the trading session here in the early hours of Friday, as the $40 level continues to be a significant barrier. That being said, I do think that eventually we get above $40, but in the short term would not surprise me at all to see this market pull back only to bounce again. After all, that would just be a trading range and that makes a lot of sense to me right now because volume of course will be a little bit anemic due to the fact that we are in the middle of vacation season on Wall Street, and therefore a lot of Institutional traders aren’t even bothered with this market.

Nonetheless, I do think that the $37.50 level is a major support level, right along with the 50-day EMA. I expect volatility, I expect choppiness, but I do expect buyers underneath willing to get involved to pick up the silver market. If we break above the $40 level, then it’s likely that we will go looking to the $42.50 level. The $42.50 level would be the measured move of this noise. Keep in mind that silver is highly influenced by the US dollar at times. So, if the US dollar strengthens, that could cause a bit of a pullback.

But it can rise at the same time, it just depends on why the US dollar is rising. It’s an industrial metal as well. So of course, the economy needs to be doing at least fairly well. But one thing that’s worth noting is that the United States added silver as one of its critical materials, and therefore, it suggests that there might be more demand for silver coming in the future.

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