Silver Price Outlook – Silver Rallies Nicely on Wednesday

Silver Technical Analysis

The silver market has rallied quite nicely in the early hours here on Wednesday to reach the highs from last week, and now we have to ask questions as to whether or not we can continue to rise from here. I think ultimately this is a market that, given enough time, will have to make a decision as to whether or not they can really stomach the volatility, understanding that silver is typically volatile anyway. On a move to the upside, I believe that the $40 level gets targeted and then after that, we really take off to the races. But the downside I think also has a very obvious level in the form of $37.50. And I will be watching that very closely. If we break down below there, then the 50 day EMA also opens up the possibility as support.

Over the longer term, we have been very bullish. But again, we’ve seen quite a bit of noise. Keep in mind that the US dollar has a highly negative correlation with silver. So that might be worth paying close attention to as well, as the US dollar is very noisy at the moment. Silver is not only a precious metal, it’s also an industrial metal, so that is something that you need to keep in the back of your mind as well. Over the longer term, I fully anticipate that Silver will find a reason to rise, but right now, we just don’t have the necessary momentum to get aggressive. Buying on the dip might be the way forward.

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