Silver Price Outlook – Silver Continues Even Higher

Silver Technical Analysis

The silver market has rallied yet again to yet another fresh high as the futures market is now above $85. If you had told me a year ago that silver would have been at $85, I would have asked who did we go to war with? Everyone?

At this point, you have to ask questions about the sustainability, but let’s be honest, you could have asked questions about sustainability 2 months ago, and most analysts, including myself, were. This is a runaway train. This is a market that nobody really knows where the top is, and that’s part of what makes it dangerous.

The Path to $100

However, there’s nothing on this chart that suggests that we can’t get to $100 an ounce. I never thought I would say that. In 20 years, silver has always been very depressed despite a lack of supply. That’s been the story here: a lack of supply. But everybody has gone hog wild on the idea of AI data centers and a lot of newer technologies. This is something I’ve been hearing for years, but they finally decided it mattered, and you can see the result.

Technical analysis suggests that the previous resistance area of $80 should end up offering support on a pullback. If we do not see $80 offer support, we most certainly will see $70 do it. The market right now is breaking out of a $12 range of consolidation, suggesting $94 an ounce. Once you get to $94 an ounce, the market will just try to get to $100.

So, with that being said, it’s the same analysis as it’s been for a while. When it pulls back and bounces, you either get long or stay out of the way. You don’t short this market. Someday this is going to be a massive shorting opportunity, but someday is not today, and I don’t see it coming anytime soon. Buying on the dips remains the best way forward.

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