Silver Price Outlook – Silver Continues to See Support Underneath

Silver Markets Technical Analysis

The silver market has pulled back a bit to break down below the 50 day EMA, only to turn around and show signs of life. All things being equal, this is a market that I think continues to see a lot of noise, but I also recognize that there is quite a bit of support just below that could come into the picture, and then again at the crucial $30 level.

The $30 level, of course, is a large round psychologically significant figure, and it’s an area where a lot of people will be paying close attention. I think at this point, that is more likely than not going to be a floor in the market. This will be especially true if the 200-day EMA continues to race towards there, and it’s probably worth noting that the stochastic oscillator is starting to roll over in the oversold region. If we turn around and break above the $32.50 level, it’s likely that the market will go looking to the $35 level.

In general, this is a situation where we continue to watch inflation and the US dollar, but we also need to pay close attention to the geopolitical situation as some traders may be looking to precious metals to protect their wealth. Either way, the trend is still very bullish and the fact that the 50 day EMA comes into the picture to offer support suggests good things for this market over the longer term. Keep in mind that silver is very volatile. So, you need to be cautious with your position sizing and therefore, I think you need to recognize that this is a situation where traders will try to find their way higher, but you need to do it with reasonable position sizing, something that I always talk about in the silver.

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