Silver Price Outlook – Silver Looks for Momentum

Silver Technical Analysis

Silver has been very noisy during the trading session here on Wednesday in the early hours, as it looks like we are still trying to come to grips with this massive move to the upside that challenged the $35 level. At this point, we just don’t have the momentum to break out yet, but clearly it looks like the buyers are still very much in control as we take a break. If we do get a pullback from here, I anticipate that it will just end up being a buying opportunity as traders look at the $33 level underneath as a major potential floor.

If we break down below there, then we could see a pretty significant flush to the downside. But really, at this point in time, I think we’ve got a situation where traders have to believe that eventually we take out the highs and go much higher. This would be helped by a weakening US dollar if we get one. Although it is worth saying that the US dollar is doing everything it can to fight back. But there are other reasons that could drive silver markets higher anyway.

So, with that being said, I think you’ve got a situation where you have to look at this through the prism of a market that is doing everything it can to break through this barrier. And if and when it does, it’s likely that silver is going to take off. In the meantime, though, we may have to work off some of that excess froth from the Monday session, which of course was a bit overdone. And with that being the case, I’m looking at dips as opportunities to get long of silver yet again.

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