Silver Price Outlook – Silver Continues to See Consolidation Ahead of NFP Friday

Silver Markets Technical Analysis

The silver market has pulled back ever so slightly during the early hours on Thursday, as we continue to hang around in the same consolidation area that we have been in for a while. All things being equal, we could be forming a bit of a bullish flag and Friday could very well be a big day for silver. I mean, it would make a certain amount of sense considering that the employment figures come out of the United States.

And that of course always gets the market moving one way or the other. If we do pull back from here, I believe that the $32.50 level should offer a certain amount of support that traders will pay close attention to, as has been previous resistance. A pullback to that area probably attracts a lot of buyers as it offers potential value. The 50 day EMA sits just below the $31.50 level and is rising. So that should be there fairly soon to back that idea up.

On the upside, we have the $35 level, which is a large round psychologically significant figure, and an area that is probably going to be defended by options traders. So, if we do rally, I think that is your short-term ceiling. Anything above there, then we start to break even higher. All things being equal, silver does look positive from a longer-term standpoint. So, these dips, I believe at this point in time, will continue to be buying opportunities.

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