Silver Price Outlook – Silver Runs into a Bit of Trouble Early

Silver Technical Analysis

The silver market gapped higher to kick off the trading session on Friday, spiked a bit and then turned around to give that back. That being said, it’s worth noting that we are in the middle of the previous consolidation range, and I think this is a market that we need to watch very closely. The $40 level above is a potential target as it was the recent swing high, but it is not the all-time high, and do keep that in mind. If we do roll over from here, that would be the first sign of negativity in silver in quite some time.

It could lead to a little bit deeper correction. And quite frankly, I think a lot of people would welcome that. That being said, you have to pay close attention to economic action due to the fact that silver is an industrial metal, it’s not just a precious metal. So, I think that’s part of what’s going on here. Plus, you also have to keep in mind that volume is pretty thin this time of year. So, it’ll be interesting to see how that plays out.

Gold is having a bit of a rough day right on the open, so that could show in the silver market as well. But I don’t necessarily think this is a sign to start shorting. I just think it shows you that it’s going to be a fight to get to that $40 level. In fact, it’s not until we break down below the $35 level that I began to think about shorting silver, and we’re nowhere near that right now.

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