Silver Technical Analysis
The silver market has rallied a bit in the early hours on Tuesday, yet again, as we continue to see bullish pressure in this market. Right now, it looks as if the main barrier at this point is going to be $80. $80 per ounce of silver is something that, quite frankly, I would have laughed at you had you said a year ago we’d be talking about that. Yet here we are.
Short-term pullbacks offer buying opportunities, from what I could see, as long as we stay above the $70 level. The $70 level of the course is a large, round, psychologically significant figure and an area that I think a lot of people will wait to see whether or not it gets defended. If it does not, then we could drop rather significantly.
Silver Bull Market Continues
As things stand right now, I think we have a situation where it’s only a matter of time before we try to break above $80. If we do, then it opens up a door to roughly $84 immediately. Either way, you cannot short this market. The market is far too bullish, and as a result, you’re just looking for value to take advantage of if you are getting involved. Eventually, we will have a correction, and that correction will be absolutely vicious. In fact, I know at least a couple of retail traders who got wiped out by the $10 move the last couple of days, so be careful with your leverage. It’s going to be what decides whether or not you survive this type of choppiness.
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