Silver Price Outlook – Silver Continues to See Noisy Moves

Silver Technical Analysis

Silver has gone back and forth during the trading session on Thursday in the early hours, as we had seen a big spike higher during the previous Wednesday session, and now we are trying to determine whether or not the market can hang on to its play that it currently resides. We have a lot of things going on at the same time from a technical analysis standpoint, not the least of which would be the fact that $50 did hold as support. $51.50 seems to be a bit of a barrier again, and now we have to look at the possibility of a double top with decreasing volume. This, of course, can be a very bad sign at times.

We have not seen the flush lower yet, though not a significant one. But if we give up the $50 level and the uptrend line, it is likely that silver will really start to break down. On the other hand, if we break above $52, or let’s just say break above the candlestick from the Wednesday session on a daily close, that would be a very strong sign that there is still plenty of momentum in this market, and that higher levels are possible.

Silver is going to be a very dangerous place to play at the moment. Therefore, you are going to need to be very cautious. But as things stand right now, it is probably better to be more wait-and-see than anything else. A bit of patience will go a long way here, from what I can see at the moment.

For a look at all of today’s economic events, check out our economic calendar.