Silver Price Outlook – Silver Continues to Consolidate

Silver Markets Technical Analysis

The silver market has been all over the place during the trading session on Wednesday so far, as we continue to see the 200-day EMA offer a bit of resistance. But at the same time, we are trying to turn things around in the precious metals markets overall. After all, we’ve seen the gold rally quite nicely during the day. So, silver has a little bit of influence coming from there as well.

If we can break above the 200-day EMA, then we will be testing the crucial $31 level, an area that’s been important multiple times. If we can clear that area, then we can go much higher. The market seems to be hanging around the $30 level overall, but the volatility means that the range is a lot wider than you would typically see it. So with that being said, I think you’ve got a situation where the market continues to be very noisy and choppy. And I think it’s in the midst of trying to find its bottom. The $28.75 level is an area that has been important multiple times in the past.

So, with this being said, I think the market is going to continue to look at that as a buying opportunity. If we were to break down below there on a daily close, that could be the end of the overall uptrend that we had seen for so long. Technically speaking, we are below the 200 day EMA, but I’m still willing to look at this through the prism of a market that probably rises over time. But I also recognize that it is a market that is much more volatile than gold. So, you have to treat it a little bit differently. Most obviously, you need to pay close attention to the idea of position sizing, taking into account the massive amounts of volatility this market has most days.

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