Silver Price Outlook – Silver Continues to Rise on Monday

Silver Technical Analysis

The silver market has rallied a bit in the early hours here on Monday as we continue to stretch towards the $65 level. It is worth noting that Friday was extraordinarily volatile and therefore dangerous. In fact, it was one of the bigger volume days that we’ve seen since the pullback in the middle of October.

With that being the case, I think we are going to see a bit of a fight at the $65 level, but it’ll be interesting to see whether or not the bears can actually take control. I certainly wouldn’t be short of this market anytime soon.

Momentum and Volatility Near the $65 Level

Really, I suspect at this point you’re probably looking at a scenario where you are typically buying the dips. The $60 level should be support, and of course, the overall momentum of this market is pretty extraordinary. So, it’s difficult to fight that. The US dollar strengthening could work against silver if we see that, but at this point in time, I think silver is just pretty much in its own world, where people are telling stories about a lack of physical supply finally catching up with the market.

That is a bit ironic because I’ve been doing this for 20 years, and that’s been the problem all along. The reality is that the demand for silver is quite a bit stronger than the actual production. It’s always been that way. This, I think, is part of an artificial intelligence story, but I also think it’s partly due to the fact that we did get that break of $50, and now people are trying to short-squeeze the market.

This will end poorly. I can pretty much guarantee that. I just don’t know when, and therefore, you have to remain somewhat cautious. You don’t want to throw your entire account into this market just to find it down 7% plus leverage over the course of an hour, which is exactly the kind of thing silver can do. Short-term dips continue to be buying opportunities at this point, but with a little bit of money management thrown in there.

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