Silver Price Outlook – Silver Continues to Show Strength

Silver Technical Analysis

The silver market has rallied pretty nicely during the early hours here on Wednesday as we have made a serious attempt to get to the $48 level. We are in a pretty significant uptrend line and of course are starting to get a little bit of a stretch to the market. So, it’s not a huge surprise to see that the $48 level has offered a bit of a headache. Short-term pullbacks, I do believe that will offer buying opportunities, especially near the $46 level and then again at the $45 level.

The US dollar is fighting back a bit during the session after initially going a bit lower. So that might be part of what’s also solidifying the $48 level. If we can break above the $48 level, then we open up the possibility of reaching the $50 level, which I do think is going to end up being a major barrier to overcome. I have no interest in shorting silver.

I think given enough time we will probably go a little higher. But the problem that you have with silver is that when it starts to fall apart, it really crumbles. So be cautious. We are a little overdone. And I think a little bit of sideways action may not be the worst thing to happen to this market in this general vicinity, as we are likely to continue to see the same things driving the markets as it has been for some time now.

For a look at all of today’s economic events, check out our economic calendar.