Silver Price Outlook – Silver Continues to Find Buyers on Dips

Silver Markets Technical Analysis

Silver rallied a bit during the early hours on Friday, but again, we see that 50-day EMA offering a bit of resistance if we can break above there, then the market is likely to go looking to the $33 level over time. Short-term pullbacks, I think, continue to be a major factor in this market, but I also recognize that the $30 level will probably end up being a major floor in the market at this juncture. This is an area that has shown itself to be important more than once, and of course there will be a lot of options traders playing around this area at the same time.

So, with that being said, I think you’ve got a situation where you’re looking to buy short-term dips, but I think given enough time, we probably see a little bit of momentum enter this market. Perhaps with the breaking of $32, we will probably have people coming in to chase the FOMO trade. If we were to break down below the $30 level, then it’s possible that the 200-day EMA, somewhere around $29.25, comes into the picture for a floor.

The market recently was oversold, and it did cross in the oversold condition of the stochastic oscillator so that’s something worth watching, but as gold rallies it seems to be forcing silver to go a little bit higher, so I think you have an upward bias. I just recognize that silver might be a bit of a laggard in comparison to gold.

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