Silver Price Outlook – Silver Continues to See Resistance

Silver Markets Technical Analysis

The silver market has seen quite a bit of noisy behavior during the early hours on Friday, as we continue to try to break above the previous uptrend line that is now acting like resistance. It’s also worth noting that the $31 level comes into the picture as well, and you’ll have to be careful with that. If we can break above $31, then it opens up a much bigger move for silver, and it is worth noting that gold looks like it’s trying to break out, but silver, as you probably know, isn’t gold.

Some retail traders seem to think it is, that the two should be doing the same thing, but they’re not, they’re completely different markets. That being said, industrial demand is a question, interest rates are most certainly a question, and a strong US dollar certainly doesn’t help. I think at this point in time, we are still very much consolidating, but that $31 level on a daily close above it becomes interesting.

If we pull back from here, the $28.75 level is your floor. Expect a lot of choppy behavior, and quite frankly, I don’t think you should get overly aggressive here. It’s a matter of letting the market tell you what it’s going to do. Short-term back and forth trading, I suppose, is possible if you’re quick, but that’s the nature of the market at the moment, so if you’re looking for bigger moves, you’re probably going to be waiting.

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