Silver Price Outlook – Silver Continues to See Momentum

Silver Markets Technical Analysis

The silver market rallied just a bit during the early hours on Tuesday as it looks like we are continuing to see a lot of money flowing into the marketplace. All things being equal, this is a market that I think continues to be a buy on the dip type of situation, and Tuesday is proving this. If we can continue to go higher, I think at this point in time, the market is likely to continue to go looking to the $35 level. A pullback at this point in time, I think has support all the way down to the $32.50 level.

For what it is worth, the $32.50 level has recently shown itself to be significant resistance, so the fact that we have broken above there should bring in a certain amount of market memory as traders will try to enter the fray on dips. Keep in mind that silver is very sensitive to interest rates, the US dollar, and to a lesser extent, geopolitical pressures.

But at this point in time, it looks like the technical analysis itself might be reason enough to get long in this market. Keep your position size reasonable because quite frankly, silver is a very dangerous contract to trade if you get too big into the market as we can have wild swings. Remember, the tick value of silver is much higher than gold. So, while they move in a similar direction, the damage or gains can be quite drastically different.

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