Silver Price Outlook – Silver Pulls Back on Friday

Silver Markets Technical Analysis

The silver market has fallen pretty significantly during the trading session on Friday in the early hours, but it looks like we are still above the crucial $32.35 level, and therefore I think you’ve got a situation where traders will continue to look at this through the prism of whether or not market memory comes into play and offers support where there was once resistance. Ultimately, this is a market that has been very noisy and very bullish, but it has not been able to break above the top of the shooting star from last Friday.

Until it does that, I think you are in a situation where it’s probably more bullish than bearish, but it doesn’t have enough momentum to be truly impressive. Keep in mind that silver typically will follow gold, so we’ll have to see what happens in the gold markets, but I certainly think that is a market that will eventually take off to the upside, so I would assume that silver will do the same eventually. In this area though, we’ll be looking for some signs of a bounce or bullish pressure that we can take advantage of. And quite frankly, we just don’t see it yet.

That doesn’t mean anything. It just means that it’s not ready to be bought. If we were to break down below the $32 level, that could change some things. But really, I don’t have any scenario right now, at least not as well while we are above the $31 that I am willing to short the silver market. If we break down below there, things could change, but we’ve got a long way to go.

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