Silver Price Outlook – Silver Continues to Look For Momentum to The Upside

Silver Markets Technical Analysis

The silver market has rallied a little bit during the early hours on Wednesday, and now that we have the consumer price index numbers coming out of the United States basically as expected, I think the market is breathing a sigh of relief and silver is starting to gain as a result. We do have the 50-day EMA sitting just above that could cause a little bit of resistance, but ultimately, I think that is but a minor footnote when it comes to what happens next. Over the longer term, I fully anticipate that this market will go looking to much higher levels, perhaps to the $32.50 level.

That’s an area that’s been important multiple times, and therefore it wouldn’t be surprising at all to see this market react to that. Anything above the $32.50 level then opens up the possibility of going all the way back to the swing high, which is at the $35 level. Keep in mind that silver is an extraordinarily volatile contract under the best of circumstances, and it is bigger than gold, so don’t trade it with a massive position size.

I have seen a lot of retail traders wipe their accounts out trading silver thinking it behaves exactly the same as gold. It really doesn’t. There are other fundamentals you have to think of, although some do overlap, such as interest rates. Silver is an industrial metal, so we’ll have to see how that comes into play, but really at this point in time, I think the most important thing to notice is that we have the $30 level offering support, and it does look like it’s going to hold.

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