Silver Price Analysis – Silver Continues to Watch $33

Silver Technical Analysis

The silver market has fallen pretty significantly in the early hours on Friday, only to reaffirm the $33 level as support. The 50-day EMA sits just below there and offers a bit of support. So, I think really at this point in time, we’ve got a situation where we continue to find plenty of buy on the dip traders willing to come in and pick up silver. If we break down below the 50-day EMA, then we just test the bottom of the overall consolidation range down to the $32 level. Ultimately, though, I do think that we will eventually break above the $34 level, reaching the $35 level.

All things being equal, this is a market that I think will continue to move on the US dollar and of course, industrial demand. Remember, silver is a bit different than gold, although it is a precious metal, it is also an industrial metal, and that is something that needs to be kept in the back of your mind. I do think ultimately, we have a scenario where traders are going to continue to look for value on dips and take advantage of cheap silver.

If we were to break down below the $32 level, then we are looking at the 200 day EMA underneath as a potential support level as well. This is an indicator that a lot of people will watch as well. Ultimately, breaking below there could open up the trapdoor to much lower levels, but right now this looks very positive to me, longer term and short term buy on the dip.

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