Silver Price Outlook – Silver Continues to See Messy and Bullish Trading

Silver Markets Technical Analysis

Silver has rallied pretty significantly during the early hours on Tuesday, as we continue to see a lot of noisy behavior, but ultimately, I think you’ve got a situation where traders are paying close attention to the US dollar more than anything else. With the US dollar falling the way, it has in early Tuesday trading, it does make a certain amount of sense that we would, in fact, see silver rally. Furthermore, we had bounced from the crucial $31 level, an area that I feel like I’ve been talking about for six months now as either support or resistance.

This market will continue to be bullish, I think in general right now, but if we were to break down below the hammer that pierced the $31 level on Friday of last week, you’d have to be very cautious. That could open up a move down to the 200-day EMA right around the $30 level. On the upside, we have the $32.35 level beginning pretty significant resistance to $32.50.

And therefore, you have to be cautious with that. But ultimately, if we do break that area, then I think you will go looking to the $35 level. All things being equal, I think it’s probably best to be a buyer of dips in silver, recognizing that this is a very noisy and choppy market. And of course, you have to be very cautious about your position sizing under the best of circumstances, but I’m still long only bias.

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