Silver Price Outlook – Silver Continues to See Support

Silver Markets Technical Analysis

Silver rallied a bit during the early hours on Friday, as it looks like we are going to continue to try to build some type of base after a significant drop towards the $30 level. The double bottom that we are trying to form is certainly going to be paid close attention to, not only due to the psychological importance of the $30 level, but also the fact that we have a trend line in this same neighborhood. Questions arise as to whether or not the US dollar strength is going to be abated or if it will be ignored by silver bulls.

Ultimately, if we can break above the 50-day EMA, I think the silver market could continue to go higher, perhaps reaching the $33 level and then eventually the $35 level. Conversely, if we were to break down below the $29 level, ostensibly the 200-day EMA, then things get kind of ugly for silver and then I think we fall pretty significantly at that point.

As things stand right now though, it certainly looks like we are doing everything we can to pick up a little bit of momentum and volume is a little quiet over the last couple of days, but that’s not a huge surprise, considering that we had Thanksgiving on Thursday and then of course, Friday is typically a little thinner as well as most Americans don’t come to work. Remember your silver CFD is based on futures pricing. So, the futures markets do matter.

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