Silver Weekly Price Outlook – Silver Shows Signs of Exhaustion Late in The Week

Silver Markets Weekly Technical Analysis

The silver market initially rallied a bit during the course of the trading week but gave back the gains to show signs of hesitation. All things being equal, this is a market that has gotten a little bit overstretched and at this point it looks like we are going to form some type of shooting star. A pullback from here could open up the possibility of moving to the $32.50 level underneath which had previously been a major resistance barrier.

Quite frankly we have broken out and broken above massive resistance so giving back a little bit of this extremely impulsive move makes quite a bit of sense. For what it is worth, the gold market looks the same, so I think it all comes together for a potential giveback and perhaps an opportunity for those who are not already in the market to get long of silver. As long as we can stay above the $32 level, I think we’re pretty much okay. I don’t necessarily think that silver is known for its stability, so you have to keep that in mind, and you have to keep your position signs reasonable in this time of pullback.

If you are already long of the silver market, then you may want to move your stop losses up or perhaps take a little bit of profit. And with a little bit of luck, the rest of it will just continue to go higher. If we were to break above the top of the candlestick for the week, that would obviously be an extraordinarily strong sign and opens up the possibility of a move to the $35 level, which for me is the target at the moment. Geopolitics, interest rates, and the US dollar all have their influence on the silver market, so you will have to keep an eye on multiple things around the world.

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