Silver Price Outlook – Silver Falls Early on Thursday as Range Still Holds

Silver Technical Analysis

The silver market has fallen pretty significantly during the early hours here on Thursday, as we are getting ready for the non-farm payroll announcement on Friday, and that, of course, means that traders will be a bit cautious about throwing a lot of money into the markets.

The $70 level underneath, I believe, continues to offer massive support and is probably on your floor in the market, and therefore, I think this could open up a potential buying opportunity, but you need to see the market form a V pattern. In other words, you want to see the market bounce a bit and show signs of life before putting money to work.

If we break down below the $69 level, that could open up the floodgates to a much deeper correction, and quite frankly, I don’t think that would be the worst-case scenario, but it seems somewhat unlikely.

Consolidation and Resilient Growth

Silver has been extraordinarily resilient and with the shortage of physical silver, that has caused a bit of a headache. Ultimately, I think we are trying to carve out a range for a while between $70 and $82 or so, and typically, when you get that type of consolidation, that means you are going higher.

I don’t think a parabolic move is in anybody’s interest at the moment, so therefore, a little bit of sideways and choppy behavior, I think, does look good to me at least, trying to keep the uptrend going at this point in time. With this market being so strong, there is only one direction you can seriously look at.

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