Silver Price Outlook – Silver Continues to Shine

Silver Technical Analysis

The silver market initially dropped a bit during the trading session here on Monday as Asia and Europe weren’t as stringently strong as they had been in the past. That being said, though, as we are coming closer to the US session, silver is starting to gain again. This is a market that is towards the top of a longer term channel. So, there might be a little bit of resistance, but quite frankly, with central banks around the world and perhaps most importantly, the Federal Reserve looking to cut interest rates, it does make a lot of sense that we would see silver continue to do fairly well.

Short-term pullbacks with the $41 level underneath offering support could be interesting buying opportunities. And if we were to break down below the $41 level, we have an even bigger support level near the $40 level. With that being said, I think you have a situation where you have to be positive and bullish in this market in general, but quite frankly, I don’t necessarily think that you have to chase it. We need to work off some of this froth from the previous week, perhaps forming a bullish flag or maybe even pulling back. We’ll just have to wait and see.

I don’t like chasing silver, although it is a very momentum driven market. It’s just dangerous up here. I’d rather buy it on the dip. We’ll just have to wait and see if we get that opportunity or just kill off some of this excess noise from going sideways, getting the market comfortable and accepting the idea of $42 an ounce.

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