Silver Weekly Price Outlook – Silver Bounces After Selling Off

Silver Markets Weekly Technical Analysis

The silver market has dropped pretty significantly during the course of the trading week to break down below the $47 level but then has turned right back around to show a certain amount of support. The $47 level has been important multiple times on the daily chart, and the weekly chart looks like it is going to continue to be important overall.

The fact that we have found a bit of support in this area and formed a couple of hammers suggests that the market is going to continue to see a lot of interest. That being said, if we were to break down below the bottom of the candlestick from the previous week—meaning basically $45—then I think silver is in serious trouble. We are seeing quite a bit of support here and a lot of sideways action, which is a good thing because the market had gotten so bullish that it needed to work off some of the excess froth that had undoubtedly entered the market.

Nonetheless, this is a market that I think, best-case scenario, goes sideways for a while, and then we’ll just have to wait and see. Keep in mind that silver is also not necessarily a precious metal in the same way gold is, so it will behave a little differently. Silver is a market that follows EV, green technology, and to an extent, precious metals. There are a lot of different factors moving it at the same time. Because of this, I think a little bit of a cooling-off period might be the best way forward. But if we pull back below $45, I think we drop another $5 rather quickly.

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