Silver Price Outlook – Silver Continues to See Range

Silver Technical Analysis

The silver market initially did try to rally during the trading session, reaching towards the $34 level before falling apart. All things being equal, this is a market that I think is still stuck in this range. The $32 level on the bottom has been massive support and the $34 level above has been a massive ceiling. The 50 day EMA, of course, is close to the $33 level, and that’s a technical indicator that a lot of people will pay attention to as well.

The 50 day EMA being relatively flat also suggests a lack of momentum. I think that the volume, of course, on Monday would have been a bit of an issue as it was Memorial Day. If we pull back, I think that the $33 level is an area that could offer support, but even if we break down below there, then I’ve become more interested in buying the pullback.

If we break above the $34 level, then it opens up the possibility of a move to the $35.50 level. All things being equal, this is a market that I think will continue to move back and forth until we get some type of catalyst. If we get some type of catalyst to go higher, then silver will probably outperform gold in that moment, but as things stand right now, it just looks stagnant. If you’re a short-term trader, this is a great market to play back and forth, but I would do so with reasonable price, size, and risk management as the market can get very volatile all of a sudden as we had seen just a couple of months ago. So, caution is a better part of valor, but I think the longer term favors the upside for silver.

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