Silver Price Outlook – Silver Rallies to Attempt Recovery on Thursday

Silver Technical Analysis

The silver market initially pulled back just a bit during the trading session on Thursday, but then rallied to start to recover. The question here is whether or not this recovery will actually matter. After all, this is a market that has been absolutely pummeled over the last couple of days. And I think you have a serious problem with the idea of this volatility, perhaps causing massive amounts of problems with stability, this stability that has gone missing from the market.

I think, really at this point it is going to continue to be the main story here with the $47 level offering a massive floor in the market. And this would be an area that we have to defend. If we cannot defend this area, I think you’ve got a real problem. I think more likely than not, we start to unwind the overall trend.

One problem that I think you need to keep in mind is that moves like this don’t happen in a vacuum, given the type of selling we’ve seen. I’d be very cautious here. I think this could just end up being a uh short-term relief rally. The type of selling that occurred, like I said, best case scenario, we may stabilize for a while, but I think the impulsive parabolic move is all but done at this point. The $50 level above will be a major area of contention. So, watch that. If we can’t get above $50, that might be your clue that the trend is about to change.

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