Silver Price Outlook – Silver Continues to Look for the Floor

Silver Markets Technical Analysis

The silver market is dancing around the crucial $31 level, an area that I’ve mentioned several times in the past, and I think we continue to look at it for potential support as it has been both support and resistance multiple times. It’s also worth noting that we tried to rally early in the day, but we struggled at the 50-day EMA.

So, if we can break above there, I think it opens up a move towards the $32.35 level. A breakdown below the $31 level could send this market down to the $30.50 area, maybe even as low as $30 level itself, as the 200 day EMA currently resides there. This of course will have a certain amount of influence on price and action overall.

With that being said, I think it is absolutely crucial that we look at this through the prism of a market that could very well follow gold. We’ll just have to wait and see. But I also like the idea of waiting to see if we can recapture the 50 day EMA before we put any real money into the market due to the fact that there has been such volatility.

Furthermore, you have to keep in mind that this market has been very, very ugly over the last couple of days, so there is going to be a little bit of hesitation, but I think if we can bounce a bit, it builds the case for a continuation of the longer term uptrend.

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