Silver Price Outlook – Silver Sits Near Support

Silver Technical Analysis

The silver market has been dancing around the same support level over the last couple of days in form of a $35.50, and at this point in time, it does look like it is trying to hold on to that support. So, it is worth paying close attention to this level. If we do break down from here, then I think you have a situation where traders will look at this through the prism of a market that probably finds support closer to the 50 day EMA.

Underneath there, then you have the $33 level, which I think we would have to break through that level to the downside for me to question the overall uptrend at the moment. More likely than not, we will find a reason to bounce from here. And if we do, we’ll go looking to the $37.50 level, an area that has shown itself to be resistant previously. Anyway, this is a very volatile market. You do need to keep that in mind, but I think it’s probably only a matter of time before the buyers return in what has been a relatively stable uptrend for some time.

If the US dollar falls, that could be a catalyst. Of course, industrial demand is a major catalyst as well. And there’s always the bit where people explain that there’s more demand than there is silver. But there’s been years where we fell pretty precipitously while that argument was still true. So, with that being said, you just need to follow the momentum. Silver is most certainly a momentum driven market and therefore you have to acknowledge which direction it is in. Over the longer term, it’s to the upside, so I remain bullish.

For a look at all of today’s economic events, check out our economic calendar.