Silver Price Outlook – Silver Rises Slightly in Early Hours

Silver Technical Analysis

The silver market has gone back and forth during the early hours on Friday, as we are looking at the top of the bullish flag offering support. The question at this point in time is whether or not we can continue to see upward momentum. And despite the fact that the US dollar has been strengthening, the market is fighting against that stronger US dollar.

All things being equal, based on the bullish flag that we had formed, there is a projection that you can only read so much into this right around $46.50. I think that’s probably based on what’s going on right now around the world. That’s probably a somewhat reasonable suggestion. It’s about a 10 % gain. It doesn’t mean we get there right away, but as you can see, silver has a habit of making its moves and big, huge sweeps. So, we just made one. We may go sideways for a while and then find a reason to make another one.

What’s that reason? I don’t know, but more likely than not, it probably has to do with the Fed, would be my guess. They are going to be cutting rates further. The question at this point is, when? The biggest thing that came back from the Federal Reserve interest rate decision was, while they did cut, they didn’t necessarily lay out and say, we’ve got two more for the rest of the year. Like I think the market was wishing for. That doesn’t mean that they won’t happen. He just didn’t come out and explicitly say it.

All things being equal though, silver is a very momentum driven market and the momentum is to the upside. Industrial demand continues to be seriously undersupplied over the longer term. The only reason that I have in silver is not necessarily the strengthening US dollar, which is a problem in and of itself at times, is that I’m starting to hear people talk about $200 an ounce silver. Anytime you hear that kind of ridiculous talk, you know you’re getting closer to the top.

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