Silver Price Outlook – Silver Plunges in New York Trading

Silver Technical Analysis

The silver market has seen a pretty nasty sell-off in the early part of the New York session as traders continue to look for some type of momentum one way or the other to get out of this consolidation area. At the time of this recording, we still haven’t broken out of it. So, I think that is something worth paying attention to. But ultimately, this is a scenario where silver just can’t get out of its own way. And if that is in fact going to be the case, then I do think that it’s very possible the $32 level gets broken through.

If we break down below the $32 level, then it’s likely that we will plunge even further, perhaps trying to get down to the 200 day EMA, which is closer to the $31.33 level. To the upside, we have the $34 level offering resistance. I think that resistance is something that’s going to be very difficult to break above. But if somehow, we did, then you would have to assume that the market goes back towards the highs at $35.50. As things stand right now, the metals markets are really taking a beating, and interest rates are rising in the United States. So, it’ll be interesting to see how this ends up playing out.

Ultimately, I do think this is a scenario where a lot of traders are just simply waiting to see which way silver breaks in order to follow it. So it could be a nice little momentum kind of follow through type of trade, even when we get the breakout. Short-term traders may try to pick up the bottom here and cause a little bit of a bounce. You can make an argument for that, I suppose, but obviously you would have to be very nimble.

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