Silver Price Outlook – Silver Continues to Look Noisy

Silver Markets Technical Analysis

The silver market pulled back just a little bit during the early hours on Wednesday as we continue to see a lot of volatility. This is nothing new for the silver market because quite frankly, it is one of the more volatile you can trade. It’s probably worth noting that recently we broke above a major resistance barrier in the form of $32.50. So, I think at this point that will be your floor in the market.

You could with the eye test, look at this through the prism of maybe this is a bullish flag. We’ll have to wait and see. But this could end up being a sign that we could break towards the $36 level. I recognize that the US dollar is highly influential on what happens with the silver market, as is the interest rate environment. So, I think you have to think through that prism.

As long as we can stay above the $32.50 level, I do think that you are looking at a market that continues to offer opportunities on dips, but I also would point out that you have to be very careful about your position sizing. If we were to break down below the $32.50 level, then we have to reassess some things, probably more or less from a fundamental standpoint. But as things look right now, I think we may pull back a little bit and then make another surge towards the $35 level above, which has been important for some time.

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