Silver Weekly Price Outlook – Silver Continues to See Support at The $30 Level

Silver Markets Weekly Technical Analysis

The silver market has plunged below the $30 level during the week, only to turn around and show signs of life. At this point, it looks as if we’re going to try to form something akin to a hammer, but we’ll have to wait and see how that actually sorts itself out. This pullback getting turned around and the market going to the upside would just be a simple continuation of the overall uptrend, which quite frankly wouldn’t be much of a surprise.

All things being equal, this is a market that I think you have to look at through the prism of what’s going on in the US dollar. And of course, the US dollar has been like a wrecking ball for the silver market over the last couple of weeks. We have gotten a little overdone in the US dollar so that might create a little bit of a reprieve for silver and other markets as well. But keep in mind, silver is an extraordinarily volatile and expensive market to say the least.

So, you do have to be somewhat cautious with your position sizing. I say that all the time in silver, mainly because of personal experience. If you get silver wrong and you are heavily levered, you will wipe out your account. That being said, it does look like it’s setting up for a bit of a bounce, so it’s interesting to me here. And for what it’s worth, gold looks like it’s trying to do the same thing and the two do generally move in the same overall direction.

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