Silver Price Outlook – Silver Continues to Bounce Around

Silver Technical Analysis

The silver market has rallied slightly during the trading session here on Thursday, as we continue to see the $47 level offer support. $47, of course, is an area that has been important a couple of times. With that being the case, I think you have to look at this as a market that might end up going back into a consolidation area between $47 and $50, which is the best case scenario here.

The last thing you want to see is impulsive behavior to the upside and another surge higher because, quite frankly, it was overdone to begin with. A pullback from here could see the 50-day EMA challenged near the $45.40 level. That’s an area that I think, if we give that up, silver’s probably done. I don’t know that we will see a fresh new high anytime soon. I think we could be in the process of doing the common blow-off top kind of pullback—maybe rally again, but not as high as before—and then start to fall.

That is going to set up $50 as being very difficult to break above and very crucial. As long as we struggle to get above $50, I think the best-case scenario is sideways action or perhaps a breakdown if things get ugly, with the $40 level in mind. The silver market, of course, is highly sensitive to the interest rate situation and industrial demand, with electric vehicles and green technologies in general driving most of what happens with silver. I’m watching this closely. A little bit of a bounce makes sense, but I really don’t believe in it until we get above $50.

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