Silver Price Outlook – Silver Continues to Threaten Ceiling

Silver Technical Analysis

The silver market initially tried to rally during the early hours on Tuesday but gave back those gains rather quickly. This isn’t to say that the market looks weak. It just looks like it doesn’t have enough momentum to break above the crucial $37.50 level. If in fact it did though, that would be a very bullish sign, allowing silver to perhaps grind its way towards the $40 level based on the measured move of the consolidation that we are currently in.

The market pulling back at this point in time would make quite a bit of sense because we have been consolidating and I do think that there are plenty of places that traders will be looking to get involved. The low from Monday, right around the $36.40 level, could be an area of interest based on the orders put in the market 24 hours ago. But even if we were to break down below there, the $36 level as well as the $35 level are both rather crucial.

The $35 level being the bottom of the range, of course, makes it incredibly important. And now that the 50-day EMA is hanging around that same area, it makes a lot of sense that it is only more solidified at this point. And with this, I think you are looking at dips as buying opportunities until we get some type of external factor to blow through the roof here, possibly setting up the next great bull phase in this market.

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