Silver Price Outlook – Silver Jumps Higher on Monday

Silver Technical Analysis

The silver market has gapped higher to kick off the trading session here on Monday as we continue to see a lot of bullish pressure. All things being equal, this is a market that has been very strong for some time, and we had recently broken out of a bullish flag, pulled back to test it for support, and then jumped again, proving market memory. That being said, this is a market that I think you need to pay close attention to the measured move of the bullish flag, which suggests we could go all the way to $46.50. Ultimately, this is a market where I think short-term pullbacks will continue to be buying opportunities.

The $42 level of course has offered support, and I think it probably continues to do. But if we were to break down below the $42 level, then we could go looking at the $40 level where the absolute floor in the market I think finds itself, especially with the 50-day EMA hanging about. The US dollar is on its back foot a bit during the trading session here on Monday. So that of course helps silver as it typically has a negative correlation.

The market is likely to continue to be very noisy, and therefore, I think we see a situation where a little bit of volatility probably comes back into the picture, but ultimately, this is a market that I think continues to see plenty of value hunters every time we do see a little bit of a sell-off. I remain bullish.

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