Silver Price Outlook – Silver Hits Top of Channel

Silver Technical Analysis

Silver has been very back and forth in the early hours here on Wednesday, which is not a huge surprise considering that we are at the top of a major channel and, of course, have been repudiated near the $42 level. Quite frankly, this is a market that has been a little overdone in the last four or five trading sessions. So, I think at this point in time, if we pull back from here, I think there is a very real possibility of finding support. And that’s exactly what I expect to see.

The $40 level was previously resistant, and it should now be support. The market has been very bullish for some time, and now I think we will probably get either sideways action or a pullback. But if we were to break above the $42 level, you would have to assume that there is an even more bullish move just waiting to happen. Maybe it’s your next impulsive leg higher.

The big thing, of course, is the fact that Friday is non-farm payroll in the United States. And that will have a major influence on what people think that the Federal Reserve will do, the US dollar will do, and interest rates will do all of that. So, it could be a bit of a reason for a pullback in silver. I don’t think it changes the trend, and I look at any significant pullback as a potential buying opportunity, at least until we break down below the 50 day EMA, if not the $37.50 level, which is far below what we currently sit. So, it’s a buy on the dip market. We don’t have any interest whatsoever in shorting, as I can see.

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