Silver Price Outlook – Silver Continues to See Buyers

The silver market gapped higher to kick off the trading session on Tuesday as the $51.50 level was tested, which is a barrier. At this point, a lot of chopping is waiting to happen. We are rolling over into the March contract during the Wednesday session, and this week includes the Thanksgiving holiday on Thursday, which will have a significant impact on the futures market. On Friday, a lot of people in the United States will not be working, so volume is going to drop even further.

Double-Top Concerns and Key Levels

Speaking of volume, what is interesting here is that we are in a double top forming a situation, and it is worth noting that volume was much lower on the second attempt to break out above $54 than on the first attempt. With that being said, you have to watch the uptrend line, the $50 level, the 50-day EMA, and the $46.50 level. All of those could be potential areas to bounce.

However, if we were to break through all that, it would mark the end of the uptrend, as it would confirm the double top with decreasing volume. This is going to be a very interesting place and a very interesting market to watch. As things stand right now, you have to believe that the buyers are still in control, but things are getting a little rough for them. We will see if they can hang on. This is a very dangerous market. Quite frankly, if you are looking to play the precious metals game, gold is probably a little safer at this juncture.

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