Silver Price Outlook – Silver Drops Hard Early Friday

Silver Technical Analysis

The silver market has fallen pretty significantly early during the trading session on Friday and is down close to 4% at the low so far. All things being equal, this is a market worth paying close attention to because we ended up forming a bit of a double top at the $54 level.

Double-Top Pattern and Early Reversal Risks

The volume at the second attempt was about 60% of the initial push higher. That is a classic topping pattern, so now we have to ask whether we have just topped out. We are right here at the uptrend line and the 50-day EMA. The double top really is not completely confirmed yet. It probably is not until we get below $47, but we are seeing a pretty significant plunge here. With that being the case, this is a market definitely worth watching.

I do not know that you want to put a lot of money into this market, but at this point in time, if we give up $47, I could see this market dropping right back down to $38. If we bounce from here, pay attention to the $50 level and again the $51.50 level, an area that has been a bit of consolidation. But blowing through the bottom of it today, the way we have it is not a good sign. So, I think silver is on the precipice of something rather big. Whether or not it recovers from here remains to be seen. If it does, it needs to do it fairly quickly.

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