Silver Weekly Price Outlook – Silver Continues to See Important Support Hold

Silver Markets Weekly Technical Analysis

The silver market fell rather significantly during the course of the week to test the $30 level and even break below it before turning around and bouncing. It’s worth noting that the weekly candlestick is forming a bit of a hammer, so it does suggest that perhaps buyers are coming in to pick things up.

It’s also worth noting that there’s a trend line there. So, the technical analysis is lining up for a potential bounce. When I look at this chart, it’s worth watching the $31.60 level because that seems to have been the ceiling for the last three weeks. So, breaking above there obviously is a very bullish sign. It could open up and move all the way to the $35 level. On the other hand, if we break down below the $29 level, then I would say that the support is killed, and we probably have a much deeper correction.

The US dollar has been toxic for the silver market at times, but there are also times when it’s been all about owning the dollar, owning Bitcoin, and owning precious metals. So that could return as well. There is a little bit of a geopolitical push to precious metals right now, although in silver, it’s not as prevalent, but it does tend to follow gold overall. So, keep an eye on that market as well.

I would also point out that silver is a very volatile market under the best of circumstances. So make sure that you keep your position size reasonable and therefore, I think you have to look at this through the prism of a bigger move and not so heavily levered because especially as we get closer to the end of the year, liquidity will start to dry up again and you can see outsized moves in either direction.

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