Silver Price Outlook – Silver Continues to Look Lost

Silver Markets Technical Analysis

Silver has gone back and forth during the course of the trading session here on Tuesday, as we are squeezing between a previous support level and a previous uptrend line. So, there’s a lot of noise right here. Further, adding to the noise is the fact that we have the 50 day EMA hanging around in the same area as well. All things being equal, this is a market that I think continues to watch the $31 level very closely and if we can break above the $31 level, then it’s possible that we could see this market go higher, perhaps reaching the $32.50 cents level.

On the other hand, if the market were to turn around and break down from here, the 200-day EMA offers a significant amount of support. The market breaking down below that level then opens up the possibility of a move down to the $28.75 level. So really, it’s when you break down below that you see silver fall apart. In general, this is a situation where a lot of traders will continue to look at this through the prism of sideways action, trying to sort out where we go next.

I don’t think there’s any compelling reason to either own or short silver at the moment, as I think it’s fairly neutral. You can say the same thing with gold, but maybe with more of an upward tilt at the moment. So, I think silver probably languishes a bit. I don’t think it’s going to fall apart drastically. I just don’t see it taking off, at least not until the US dollar calms down.

For a look at all of today’s economic events, check out our economic calendar.