Silver Price Outlook – Silver Continues to Rise on Tuesday

Silver Technical Analysis

Silver has shown itself to be bullish again during the trading session on Tuesday, as we are still above the $50 level. If you saw my analysis yesterday, you would know that I believe there is an area of concern between $50 and the $51.50 level. There could be a little bit of trouble. Right now, we are basically in the middle of that, and we’ll just have to wait and see how this plays out.

If we can break above the $51.50 level, then it’s likely that silver really takes off to the upside. Volume is picking up, and that is a good thing. However, we’ve got to get past this little barrier because this does look like the classic straight-up-in-the-air move, followed by distribution and then a secondary attempt to break out. We’ll see if that’s actually the case. Either way, I think we have a market that is about to make a huge move. It’s either going to be to the upside or this was the top. We’ll have to wait and see.

We do have to be somewhat cautious at this time, but I do recognize that it’s almost impossible to short silver, at least until we get below the 50-day EMA, which is about $4.50 south of here. Pullbacks are very possible. If we see pullbacks with a very ugly red candlestick, that might give us a heads-up. Or, if we break above $51.50, we could really see this thing take off to the upside, perhaps for a large move at that point.

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