Silver Price Outlook – Silver Continues to See Volatility

Silver Technical Analysis

Silver continues to see a lot of noisy behavior, with the market fluctuating around the $47 level during Wednesday’s trading session. The $47 level has been important multiple times, and it’s likely only a matter of time before buyers step in on dips.

That being said, I’d be watching the 50-day EMA near the $45.86 level for support. If we were to break down below there, it’s possible we could see a much deeper correction. We may be in the midst of forming some type of head-and-shoulders pattern, or we could bounce and move sideways. Going sideways would be the best case scenario here, as it would allow the market to work off some of that excess froth without doing real damage to your account after what we have seen.

People are starting to accept the idea of $48 an ounce for silver, and eventually, someone will want to own more, which could push prices higher. The $50 level has been crucial multiple times over the longer term, and with that being said, traders will likely continue to see this as a volatile situation.

A market this volatile requires caution with position sizing since you can take heavy losses quickly if you’re not careful. If we do break down below the $45 region, I think the trend is probably over and we could move much lower. I’ve thought for a while that we may have seen the highs in silver, and that still looks to be the case—but if we can break back above $50, then it’s time to re-question everything.

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