• The silver market initially rallied during the trading session on Thursday but found itself struggling as soon as we got to the $50 level.
• This is worth watching, because the $50 level has a long history of being an absolute ceiling in this market.
• The markets continue to see a lot of volatility at this point, and I do think that it will be very difficult for the $50 level to be broken.
• If we do break above that level, then it’s likely that we should see even more “FOMO trading”, but at this point in time I think silver has gotten a little bit ahead of itself.
   

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Trend

The trend is still very much to the upside, but we also have to keep in mind that the market is a bit overdone, so this reaction isn’t overly surprising. There is a massive barrier near the $50 level, and it’s possible that the market may try to find a short-term ceiling. I’m not really worried about shorting the silver market yet, because at the $50 level does what it had done a couple of times between now and the late 1970s, silver could drop down to the single digit level. I don’t think that happens, but it is something that you have to keep in mind.
 

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For what it is worth, the volume picked up rather drastically during the trading session, so this tells me just how many traders were willing to get involved. As I saw traders all over Twitter celebrate the idea of silver “going to the moon”, just a few hours later we had seen silver drop over 3% from where it had opened the session. This is a horrible candlestick for the session, and it’s difficult to imagine that the market will pull back a little further from here. This not to say that it has to, and it’s not even to say that you should short the silver market, but I think there is a message in this session, and now the question will be is there going to be any follow-through?

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