Silver Price Outlook – Silver Continues to Press the Same Barrier

Silver Technical Analysis

The silver market initially pulled back a bit during the early hours on Tuesday, breaking below the crucial 50-day EMA only to turn around and show signs of life again. As things stand right now, I thinks silver continues to look at the $33 level as a major barrier. And if we can get above there, then I think you’ve got a real shot at the market trying to break out and going much higher. In fact, I believe that if we broke above the $33 level on a daily close, it could open up a move back to the crucial $35 level from where we sold off.

Market participants continue to have a lot of concerns out there and while silver is a precious metal, it’s also an industrial one and therefore you have to keep in mind that with the economic concerns around the world right now, you may have a situation where traders just simply don’t want to get too aggressive in this market because the industrial usage situation may be rather anemic for silver going forward.

So, with this, I think there’s a little bit of hesitation, but given enough time, I would anticipate that the buyers return. Short-term pullbacks are very possible with $32 offering support. And then again, the 200-day EMA, which is just above the $31 level. I have no interest in shorting silver anytime soon. Although if we do start to see the metals sell off drastically, it’s generally silver I short first, not gold.

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