Silver Price Outlook – Silver Treads Water in Early Wednesday Trading

Silver Technical Analysis

Silver has gone back and forth during the course of the early hours here on Wednesday as we continue to hang out just above the $44 level. All things being equal, this is a market that continues to be very bullish, and at this point, it’s possible that we may just simply have to go sideways for a minute due to the fact that we had such a massive impulsive move to the upside.

The bullish flag that had formed previously that we broke out suggested that we were going to go into the $46 level and really at this point in time, I don’t see anything on this chart to tell me it’s going to change and that it’s impossible to happen.

Short term pullbacks continue to be buying opportunities. And I think all things being equal, this is a market that likely will continue to move based on the idea of loose monetary policy, specifically from the Federal Reserve. And of course, if the US dollar continues to shrink, that will help silver as well.

Currently, I see the $42 level as fairly significant support, as it was basically the top of that bullish flag. And now probably has proven itself a couple of times over the last week or so. Ultimately, I do think that we go looking towards a $46 level given enough time, but I also recognize that we may have to kill a little bit of time just under the $45 level to work off some of the froth.

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