Silver Price Outlook – Silver Continues to Find Buyers on Dips

Silver Markets Technical Analysis

The silver market has pulled back just a bit during the trading session on Wednesday as we continue to see a lot of noise just above the $33.33 level. The $33.33 level has been important multiple times in the past and as a result, it’s not a huge surprise to see a little bit of market memory here. That being said, I think you’ve got a situation where silver continues to move quite wildly, but you also have to keep in mind that there’s an FOMC meeting later in the trading session, and that will have a major influence on what happens with the US dollar, and then by extension, what happens with the silver market.

It’s obviously in a very bullish trend and if the Fed sounds remotely dovish during the session today, it’s very likely that silver will continue to find buyers. Regardless, I do think that this remains a buy on the dip market, unless the Federal Reserve raises rates for some reason, and therefore, I look at the $33.33 level as a potential support level to buy at, and then again at the $32.35 level.

Ultimately, this is a market that I have no interest in shorting and at this point, I think $35 above is going to be the potential target. Breaking above that, then it opens up the door all the way to $50. We’ve seen $35 be broken a couple of times in the past and generally, what happens at that point is silver goes on a tear to the outside. All things being equal though, I remain bullish.

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