Silver Price Outlook – Silver Continues to See Sluggish Resistance

Silver Markets Technical Analysis

The silver market rallied initially during the trading session on Monday as the $30 level was targeted to the upside. We also have a previous uptrend line that should now offer resistance and so far, it has. The market is also dancing around the 200 day EMA, so it ties together for a very noisy place on the chart. Furthermore, we also have the holidays over the next week or two, so that affects liquidity and therefore I’m not really sure that you can read too much into the charts when it comes to silver. In other words, this is a situation where we are killing time and waiting for momentum to show up.

However, if we were to break above the $30.50 level, I think that would be a very valuable piece of insight that we are in fact recovering. If we break down below the lows of the last couple of trading sessions, then I think the market probably breaks down. In general, I think this is a market that’s on the precipice of a bigger move, but that move might actually be early next year, keep that in mind.

All things being equal, I think we’ve got a situation where traders will continue to look at this through the prism of going sideways. So, you have to be very cautious. Furthermore, keep your position size reasonable as the market is almost certainly going to be erratic.

For a look at all of today’s economic events, check out our economic calendar.