Silver Price Outlook – Silver Continues to See Massive Buying

Silver Technical Analysis

The silver market has jumped higher to kick off the trading session on Wednesday, clearing the $51.50 level. If we can break above there, the market looks as if we are going to continue to see a lot of buyers on short-term pullbacks. But the other thing that I am watching is volume is starting to drop. All things being equal, this is a market that I think is trying to get to the $54 level, but we’ll have to wait and see whether or not we can get any real traction.

Ultimately, this is a market that is showing normal volume, but it has shown quite a bit of volume drop, then showed a little less, and is now showing somewhat the same volume. So, we’ll have to wait and see. We could break to the upside, but one thing is for sure: this is a market that you just can’t short. And in fact, I wouldn’t consider shorting it until we break down below probably $46.

Buyers Continue to Run Things

So, we’re nowhere near there right now. And I think you’ve got a situation where traders will continue to look at this as buy on the dip. $50, of course, is an important level. We have blown through that. So, we’ll have to see if that adds support on the way back down. Again, $54 right now is a ceiling.

We are heading into Thanksgiving on Thursday, so I wouldn’t expect much. Friday is going to be thin. Maybe it happens then, but it would be in really thin conditions. So, I would be cautious about getting overly excited. Traders will push this around during the Wednesday session, but the next two days might be pretty dangerous to trade.

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