Silver Price Outlook – Silver Continues to Look at Ceiling

Silver Markets Technical Analysis

The silver market rallied just a bit during the early hours on Wednesday, as we continue to look at this area right around the $30 level as potentially difficult. The 50 day EMAs is just above, and we are digging into the neckline of the previous head and shoulders pattern, so we’ll have to wait and see whether or not that holds. The precious metals markets in general have done a little bit better this morning but you can see especially with silver the last couple of days we tried to rally and gave up those rallies, so I don’t know how much I trust this move to the upside quite yet.

I said yesterday in the video that I’d if we can get to $31 and I would be more convinced and at this point, a little bit hesitant to get long as silver, that doesn’t necessarily mean I’m looking to short silver, just that I don’t trust the behavior of this market, especially considering yields continue to rip higher in the United States. And that generally works against silver. And in fact, that’s probably what caused silver to give up almost all of its gains during the previous session. So, keep that in mind, we are at an interesting inflection point. We’ll just have to see if it holds, but still, to me it looks like there’s a lot of overhead issue in the silver market that could cause some headaches.

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