Silver Price Outlook – Silver Continues to See Support Underneath

Silver Markets Technical Analysis

Silver bounced a bit during the early hours on Tuesday as the $30 level has offered fairly significant support, both from a psychological and I suspect from a structural standpoint as options traders are probably watching very closely. Furthermore, you have to keep in mind that this is basically halfway between the 200 day EMA below and the 50 day EMA above. So generally, that means you’re going to have a lot of noise in this area anyway.

At this point, I think you’ve got a situation where we are trying to find the momentum to go higher, and that will probably be seen in the gold market first, to be honest. That being said, we are still very much in an uptrend that hasn’t changed, although we are starting to see a little bit of a pushback. When you draw a trend line on this chart, you can clearly see that this area that we are sitting just above should be important.

If we can break above the 50-day EMA, then it’s likely that the silver market really starts to take off and then it becomes a bigger move towards the $35 level. I don’t have any interest in trying to short this market, at least not until we break down below the 200-day EMA, which is ostensibly the same thing as saying below the $29 level at the moment. Really at this point, I suspect we’re going to see a little bit of consolidation, perhaps a little bit of chop, and then eventually we’ll get the momentum that will drag everybody else into the market and make them start buying silver.

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