Silver Price Outlook – Silver Continues to See Downward Pressure But Signs of Life Appear

Silver Markets Technical Analysis

The silver market fell pretty significantly during the early hours on Thursday only to turn around and show signs of life again. By doing so, the market has ended up forming a little bit of a hammer, but it looks to me like we could rally from here and try to get back to the 50-day EMA. If we do, that could be a nice short-term trade.

The fact that we are bouncing the way we are does suggest that perhaps this is a market that I think given enough time will try to recover because we are so oversold. A lot of this will come down to the US Dollar and whether or not it is strengthening. It is so overbought at this point that a snapback rally in other assets makes a lot of sense, including silver.

So, because of this, I am slightly bullish, but I also recognize that you’d have to be very cautious to buy this. If we break down below the bottom of the candlestick, then I think it opens up the possibility of a move to the 200 day EMA. The 200 day EMA of course is a major indicator that people use to show trends. So, anything below there, you’re looking at getting absolutely smoked. This has been a very vicious pullback, but that’s not that uncommon for silver, which is why I always say be cautious with your position size, because the leverage can get you hurt.

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