Silver Price Outlook – Silver Quiet at Tuesday Open

Silver Technical Analysis

The silver market has gone back and forth during the trading session on Tuesday in the early hours as we approach the crucial 50 day EMA. At this point in time, the market is a little stretched, but I do think that yesterday’s action of initially falling only to turn around and show signs of life is indicative of a market that probably sees higher prices. Short-term pullbacks at this point in time will continue to be potential opportunities for the silver market. And really at this point in time, I think there is a significant amount of support all the way down to at least the $30 level.

So, I’m looking at dips as potential buying opportunities. If we can break above the 50 day EMA, then that opens up the possibility of a move to the $34 level. Regardless, I think this is a situation where traders will have to continue to be somewhat cautious, but that’s generally the case with silver anyway. Position sizing is crucial in this market as it is a rather large contract, so do keep that in mind. But it does tend to play catch up to gold at times, despite the fact that it is not only a precious metal, but it is also an industrial one, which is part of the problem right now with all of the tariff talk.

The question, of course, is whether there will be enough demand for silver going forward. The answer is probably yes, we just don’t know exactly when and I think that’s part of the hesitation here. Either way, I have no interest in shorting silver. I think it is a strong market and despite the massive, forced liquidation of a couple of weeks ago, really at this point in time, I still think the easier path is higher.

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