Silver Price Outlook – Silver Continues to See The $30 Level as Important

Silver Markets Technical Analysis

The silver market fell a bit in the early hours of Tuesday, getting awfully close to the crucial $30 level. We have bounced since then and this could suggest that we are going to turn things around and recover a bit. If that ends up being the case, then we could very well save the trend at the same time. $30, of course, is a large round psychologically significant figure, and I would assume that there is going to be a certain amount of options being traded there. We are halfway between the 50-day EMA and the 200-day EMA, so that comes into the picture as well, as quite often in the middle of those two moving averages, you will see some type of reaction.

The market has plunged quite a bit over the last couple of weeks, so one might think that we are a little overdone. Anyway, despite the sell-off that we have seen, we are still very much in an uptrend, so you still have to think of it through that prism. I don’t know exactly how the market is going to behave now that some of the geopolitical tension is out of the picture as we are starting to see peace overtures from several different combatants around the world.

And therefore, it could affect the precious metals markets and quite frankly should. That’s only part of the question though, because of course, silver is an industrial metal and it’s not as if central banks are suddenly going to tighten monetary policy again. So, loosening monetary policy typically will be good for metals, and I think silver will continue to see some interest based on that alone.

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