Silver Price Outlook – Silver Continues to Drift Towards Support

Silver Technical Analysis

The silver market has fallen during the early hours here on Monday, as the $47 level offers a bit of support, and we find ourselves challenging it yet again. There is a significant amount of support not only at $47 but down to the $46.50 level. It’s worth noting that the 50-day EMA is also starting to head in the same general area. So, I think that silver also gives a little bit of technical support, but really, at this point, it’s starting to look more and more like a top, maybe not a permanent top, but a top in the short term. We’ll just have to wait and see whether or not the market breaks down below there.

If we bounce from here, the market running to the $50 level is not a major impossibility. It is a large, round, psychologically significant figure and a lot of people will be watching that for a potential target. A breakdown below the 50-day EMA probably opens up the possibility of a move down to the $40 level.

Ultimately, though, this is a market that I think continues to be very noisy. I think it is a market that has a lot of froth in it and a lot of nonsense in it due to all of the euphoria that we have seen from retail traders, and therefore, I think a significant pullback is coming. This pullback could be violent at times, as the silver market has a long history of being volatile at times. Make sure to keep your position size reasonable.

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