Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market has been pretty noisy in early Friday trading, but that is not a huge surprise considering just how wild the market has been as of late. We are threatening the $65 level, and at this point, there is nothing that keeps the market from going through it. That does not mean that it happens right away, and it does not mean that it happens easily, but it does look like it will end up happening.

Short-term pullbacks continue to be buying opportunities from everything seen here. The $60 level underneath should be a bit of a floor, and that assumes the market even gets that low. The $62.50 area has seen a little bit of impulsive movement as well, so that could be a floor also.

Momentum Targets and Volatility Risk

As far as a target is concerned, the flag that broke out several days ago measures for a potential move to about $68. There is nothing on the chart that suggests that level will not be reached. Volume is fairly strong, but it is not as strong as it once was before the vicious pullback from $54, and that is a bit concerning.

At the end of the day, the market appears out of control, and it can go parabolic much longer than expected. This is a very difficult environment to get a handle on, which is why buying dips for short-term trades makes sense and participating until the market breaks apart. Moves like this tend to end very poorly, and the last thing to do is buy at the top with a huge position. It is better to play the market as it comes day by day and take advantage of what has been strong and significant momentum.

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