Silver Price Outlook – Silver Continues to Grind Back and Forth

The silver market has gone slightly negatively in the early hours on Monday as we continue to ask questions of the uptrend, although it should be stated that Friday ended up being a huge recovery day. If you remember when I recorded the video on Friday, I think we were down about 3 1⁄2%, but we did bounce from a potential trend line area right along with almost getting to the 50-day EMA.

Critical Resistance and Volume Concerns

The one bad thing I see on this chart, though, is that it seems like $50 is causing a bit of a headache still, and volume continues to be a major issue. Although volume is fairly strong, historically speaking, it’s still a lot less than it was when we made the first side of the potential double top. In the next couple of days, we should have some type of answer, but I would warn you that with Thanksgiving being on Thursday in the United States and the fact that most people don’t work on Friday either, this week could be pretty volatile regardless. It might just be a simple lack of participation situation.

If we break down below the 50-day EMA, then watch this $47 area because clearing that to the downside by maybe 50 cents or so really opens up the trap door. To the upside, the $51.50 level being broken to the upside opens up the possibility of a move to $54 and continuation. But right now, I think the market really doesn’t want to see that because if we start to go parabolic again, you’re going to exhaust it even further.

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