Silver Price Outlook – Silver Sees Choppy Behavior

Silver Technical Analysis

The silver market gapped lower to kick off the trading session on Tuesday, only to turn around and rally. However, that rally has since seen quite a bit of selling pressure and now we have a situation where we are right in the middle of that Friday candlestick when everybody celebrated the idea that the Federal Reserve might be cutting rates.

If we break down from here, then the $37.50 level is a potentially significant support level, and I’ll be watching that very closely if we do, in fact, drop down to that area. The 50 day EMA sits right about there as well and as a result, I think you’ve got a situation where things remain very noisy. But I do think that eventually the buyers will come back because of the central banks around the world looking to cut rates and that does bring up asset prices.

Silver, of course, is a precious metal, but it is also a significant industrial metal that also will pay close attention to the global economy. I think you see a lot of noise, but right now we are still very much in a trading range, as is the case with a lot of markets around the world, as volumes are thin at the moment, while the larger traders are away on holiday. Ultimately, this is a market I am still bullish in, but I also recognize that it will be noisy at times. Position sizing is paramount in silver trading as per usual.

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