Silver Price Outlook – Silver Continues to See Momentum

Silver Technical Analysis

Silver has rallied a bit during the early hours here on Monday, but at this point in time, it does look like we are giving some of that back. Ultimately, this is a market that has been bullish for some time, and this is just an extension of that. We are overbought. Basically, pretty much using any metric I can think of, I can find that we are overbought. So, in other words, if you’re not already in this market, chasing it is probably not going to be the way to go.

What you’re really hoping to do is see some type of pullback that you can get involved in. The measured move of a bullish flag that had previously formed was for $46 and now we find ourselves at $47, which is not a huge surprise because quite often we’ll move long past the target, but the initial target is what people aim for to begin with.

Short-term pullbacks I think are buying opportunities. I would love to see silver drop down to the $44 level, although we’ll have to wait and see how that plays out. We are getting a little extended, like I said. I don’t want to short the market, but I really don’t like chasing it after this type of move. The absolute floor in the market is probably somewhere closer to the $42 level, most certainly at the $40 level. The 50-day EMA is trying to get to that $42 level, so who knows, maybe we’ll eventually pull back. But as things stand right now, Silver looks like it’s ready to continue flying. I just don’t like chasing it three and four dollars higher than the actual smarter entry.

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