Silver Price Outlook – Silver Continues to Have a Wild Time

Silver Technical Analysis

This has been wild price action all day, and quite frankly, I think we are getting to the point where something has to be done. This is a market that can’t go straight up in the air forever. Eventually, gravity gets involved. When you look at lower timeframe charts, it really shows just how chaotic the action has been with a jump higher right at the open and then a complete collapse about an hour later, another bounce, and then a collapse again. Now, this doesn’t mean that the trend is over, but what it does mean is that it’s given people something to think about.

Gravity Gets Involved

In that general environment, when you may have bought silver at say $50, and you’re all the way up here, you start to think about taking a profit. And it just feeds the cycle. Even if you don’t do that, it keeps you from going all in and jumping into the market, buying a ton of silver. So, I think you’ve got a situation here where maybe the market stabilizes and looks for some type of support and then just grinds sideways.

I will say this, though: if we lose the $70 handle, that would be a very bad sign, and it probably leads to a deeper correction. The only thing I can say about silver that’s going to be a major issue is the volatility. For example, you could buy silver and be right in the long term, but lose out in the short term. So leverage is the only way you can control what you’re doing, and what I mean by that is don’t use a ton of it. This is a very dangerous market, and they did just raise the margin requirements, which makes sense after this type of move.

I’ve been hearing that it’s manipulation out on Twitter and places like that, but the reality is, futures exchanges need to make sure that everybody can pay their bills. And when a market gets like this, margins rise, and that’s part of what takes out the volatility eventually. We’ll have to see how this plays out, but silver is, without a doubt, the most dangerous game in town right now. But clearly, there’s only one direction that you can put money to work in.

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