Silver Price Outlook – Silver Continues to Reach Higher on Thursday

Silver Technical Analysis

The silver market gapped higher to kick off the trading session on Thursday and then shot even further to the upside. This is a market that’s recently broken out of a bullish flag or maybe a bullish pennant pattern, or possibly even an ascending triangle. Nonetheless, they all say the same thing, and that’s that silver should go higher. In this case, so many things are lining up at the same time that it is a clear signal of intent.

That being said, it looks like we are giving back a little bit as New York comes on board. And with the Americans getting involved, there might be a little bit of profit-taking, but it certainly looks like there is support underneath. The $60 level is an area where I would expect to see people interested in this market, just based on market memory.

Key Levels and Overextended Momentum

And of course, if we continue to go higher, the next potential target might be $65. $65 is a large round, psychologically significant figure. And right now, that’s part of the problem. We are just in no man’s land, and we don’t really know where this ends. When it ends, it’ll end poorly, but right now we are there, and I think you have to recognize that as such.

And in this environment, clearly, the one thing you cannot do is short. Yes, there will come a time when shorting the market is okay, but right now the momentum is just too strong. With this, I’m looking at dips as potential buying opportunities all the way down to at least $57.50.

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