(MENAFN- Daily Forex) Potential signal:

I am selling below $47, with a stop loss at $47.60, and a target of $44.

• Silver traded erratically on Monday, giving up early gains and showing signs of fading momentum.
• I suspect a potential top forming near $50, though sideways consolidation remains possible if the market stabilizes at current elevated levels.

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Silver continues to be very noisy, and it's worth noting that it initially tried to rally during the trading session here on Monday but gave back gains. I think we have to ask questions about what happens next because one thing that I'm watching is the potential for a top ultimately.

The market shot straight up in the air and then melted down, bounced slightly, only to see a little bit of lackluster momentum. All things being equal, the volume dropping the way it has tells you that there's less interest in the silver market. I think a lot of this makes sense due to the fact that it had gotten a little bit overdone. The hammer from last week on the Tuesday session, for me, is the opening to much lower prices. While I don't necessarily think that it's time to get heavily short of silver at the moment, I do think that we are getting pretty close to a potential top.$50 is Serious Resistance

If we rally from here, the $50 level will be a very difficult barrier to break. If we break above that, that could throw that thesis out the window, and with that being said, the market could go looking to the $54 level. But all things being equal, this is a market that I think is very noisy and choppy. When I look at this, it's likely that we will continue to see a lot of volatility-that's normal for silver. But if we see the metals market overall drift a little lower, the silver market will lead the charge lower. It always does.

Dropping demand and just kind of hanging out here sets us up for a potential slip. We'll just have to wait and see. Again, though, I think-and I've been saying this for days-the best case scenario is we go sideways for a while and the market simply accepts these elevated prices. I don't know if that's going to happen.

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