Silver Price Outlook – Silver Gives Up Initial Gains After NFP

Silver Technical Analysis

Silver initially rallied a bit during the trading session here on Thursday, touching the resistance region that is focusing on $37.50, but gave back those gains as the jobs number in the United States came out hotter than anticipated, which of course has people looking at the U.S. dollar a little differently, as the Federal Reserve may have to wait before cutting.

Nonetheless, the silver market is very bullish. It has been for a while, so there’s really no reason to get overly excited about this. I think you’ve got a situation where traders will continue to look at dips as buying opportunities, but we could drop all the way back towards the $35 level before we really get aggressive buying. We’ll just have to wait and see.

Nonetheless, I don’t want to short this market. I think you’re looking for a drop and then a bounce that you can trade on the right hand side of the V. That’s the most important thing to do when this happens, as the market will more likely than not continue to see buyers regardless, but maybe not up at these prices. Keep in mind that there are a couple of short futures trading days between Thursday and Friday, so that does have a major influence on liquidity. And with that being the case, you have to assume that might skew price a bit. But ultimately, I think that any time silver drops, it has to be looked at as a potential value play.

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