Silver Price Outlook – Silver Continues to See Volatile Trading at Extreme Highs

Silver Technical Analysis

The silver market has fallen a bit during the early hours here on Thursday, as it looks like the $60 level will continue to offer a bit of resistance. It’s a large, round, psychologically significant figure, and of course, an area that we’ve never been to before. So, we’re at an all-time high every time we go positive. Pulling back from here makes quite a bit of sense. And I think a lot of traders would like to see that one area that I’m watching very closely is the $55 level, which extends down to the $54 level. That is your previous resistance area and should now have plenty of market memory.

Support Zones and Trend Behavior

The 50-day EMA currently sits at the $50 level, and it is rallying and rising. So, I think that is dynamic support just waiting to get involved. Silver has been on fire as of late, and I can tell you from experience that once this trend ends, it’ll probably end poorly. But as things stand right now, you simply cannot short it. If we break down below the 50-day EMA, you can see something ugly happen, but we are roughly $8 above there, which is outrageous in silver.

And with that being the case, I think the best case scenario here is some sideways action as we try to digest some of these gains or even a pullback. Look at pullbacks and the consequent bounce after that as a potential opportunity.

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