Silver Price Outlook – Silver Continues to Look Strong

Silver Technical Analysis

The silver market has gone back and forth during the trading session here on Friday, as we continue to look at the $65 level as a bit of an anchor for price. All things being equal, this is a market that is pretty much impossible to short at this point. And it certainly looks positive, but you have to be very cautious just throwing all of your money into this asset now that it has gone parabolic again.

After all, these are not normal moves, and silver has a long history of breaking hearts. So, will it be different this time? Maybe, but when you zoom out, look over the last roughly eight, nine years, you can see we have been parabolic since probably July or so.

Overextended Conditions Raise Risk

And with that, I think you’ve got a situation where short-term pullbacks are viable opportunities, but you really want to see several dollars walk out of the price before you put money to work. $60 would be an area that I’d be interested in. And if we could drop there and bounce, same thing with $57, and then followed by $55, where the 50-day EMA is still appearing.

Well overextended at this point, but there’s nothing on this chart that suggests that we are about to come back to normalcy. And with that being the case, I think you have to be very cautious here. This has the ability to be one of the most dangerous markets you trade right now in both directions, quite frankly. But clearly, there’s only one direction that you should be involved in. There’s really no reason to be shorting this yet. We just haven’t seen the negativity play out.

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