Silver Price Outlook – Silver Noisy in Early Friday Session

Silver Technical Analysis

The silver market has been rather noisy in the short term trading on Friday and that does make a certain amount of sense considering that the non-farm payroll announcement is not being released. So that will take a significant amount of volatility out of the market. If we do drop from here and after the session on Thursday, it really wouldn’t surprise me. I think there’s plenty of support at $46 followed by the $45 level.

Ultimately $48 is offering a massive ceiling in this market, which is not a huge surprise because if you go back to silver history, back to the 1970s actually, every time we get kind of close to $50, something happens. That’s not to say that we can’t hit 50 or go above there, but what it does suggest is there’s a lot of market memory in this area. Thereby it might struggle to break out for a while. I certainly would not short silver. Really at this point in time, I think we would have to break down below $42 to even have that conversation.

Ultimately though, I think we’re looking at sideways action, trying to sort out what to do next, but we are definitely stretched. So sideways action probably helps in order to work off some of the excess froth that we’ve seen. It’s natural in an uptrend. Even if you don’t get a significant pullback, you can work off some of that excess froth in the market by going sideways.

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