Silver Price Outlook – Silver Continues to Race Higher on Boxing Day

Silver Technical Analysis

Silver has jumped all the way toward the $76 level in early trading on Friday. This session, of course, will be pretty thin and will be shortened due to the fact that markets close early to celebrate the Christmas holiday season.

The day after Christmas, of course, is a day that most people don’t return to work in the United States. It’s also worth noting that it’s either Boxing Day or some derivative of that in about half of Europe. All these things being true, I think you have to look at this as a market that, despite the fact it was so bullish on Friday, I don’t think anything’s changed, and besides, that’s the only direction you can trade this market, to the upside.

Parabolic Market Reality

In my entire career, $50 had been a major ceiling in the market, but we are now basically 50% above there in a straight line. This will end badly someday, but when that ends poorly, we don’t know.

There are concerns about running out of physical silver. In fact, I just read a little blurb about the jeweler Tiffany’s has actually run out of silver. That’s okay because at the end of the day, I think what we are seeing here is a repricing of the reality. My entire career there has been a shortage of silver, and quite frankly, it was artificially suppressed.

I don’t truthfully know what changed this time around; perhaps the banks finally stopped shorting paper silver, we don’t know. But at this point in time, this looks like a buy on the dip scenario. You simply cannot short silver. Yes, somebody somewhere is going to make a billion dollars shorting silver at the top. The problem is you have to know where the top is. There’s no sign whatsoever that this market is cooling off, so I look at each dip as a potential buying opportunity, but this is about as scary as it gets with a parabolic chart.

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