Silver Price Outlook – Silver Looking to Bounce?

Silver Technical Analysis

The silver market has been back and forth during the trading session on Tuesday as we continue to see silver respect the $37.50 level as support. Ultimately, I think this is a market that I think continues to see a lot of chop and I think continues to see a lot of questions asked about whether or not we can turn around and hit the upside again. The selling pressure on Monday was pretty ugly, but the fact that we stopped right at a support level does bode well.

With CPI numbers coming out during the day on Tuesday, there was a lot of concern, but those CPI numbers in the United States came out at basically where we anticipated. So, with that, I think the markets are breathing a little bit of a sigh of relief and we may go back to the longer term trends, not only in silver, but other markets as well. If we break down below the $37.50 level, then we could go looking at the 50 day EMA in order to find support.

I don’t necessarily think this is a market that is going to shoot straight up in the air, but I also recognize that it’s not one you can short. It’s just been far too strong for far too long. And that being the case, I am going to be looking for a bounce or a hammer or something like that to start buying. I would also pay attention to gold because gold and silver do tend to move in the same overall direction. So, with that, it could give you a little bit of a heads up as well.

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