Silver Price Outlook – Silver Continues to Drift Lower

Silver Technical Analysis

Silver has shown itself to be rather choppy and volatile during the early hours on Monday as the $50 level comes into the picture. With that being said, it’s likely that the market also looks at this as a potential double top, but we’ll have to wait and see. Ultimately, this is also a market that has the $50 level underneath offering a massive amount of support, but breaking down below there could open up a move down to the $47 level. If the $47 level gets broken to the downside, then the market starts dropping toward the $38 level over the longer term.

Silver has seen a decline in volume since its initial push higher. As things stand right now, there is a double top forming with lower volume. It’s still somewhat elevated volume, so it is not as worrisome as it could be, but the possibility remains. Giving up $50 is a big loss. Giving up $47 would be catastrophic. If we turn around and break above the $51.50 level, then perhaps we will make a run back to the $54 level.

As things stand right now, there needs to be a push higher pretty quickly or people may start to worry about this trend and begin to pull out of the market. If and when that happens, it could be rather brutal because silver does tend to move rapidly once everybody makes up their mind. Silver can be dangerous, and its crucial that you keep your position size reasonable, and money management is paramount.

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