Silver Price Outlook – Silver Continues to See Strength on Wednesday

Silver Technical Analysis

The silver market is continuing to go back and forth as it looks like we are trying to build up the necessary momentum to reach the $50 level. The $50 level has been important multiple times, and this, of course, is an area that has been like a massive brick wall for silver over the years going all the way back to about 1979. So, it’ll be interesting to see if we can break above there. If we do, that would be an extraordinarily bullish sign. In the meantime, I do think that we get short-term pullbacks occasionally, as we try to build up the necessary inertia to take out that major level.

We could break down from here and try to go looking at the $45 level, possibly even the $46 level above there for support. I don’t have any interest in shorting this market, although it is overextended. You can see it is starting to fight back a little bit, so that’s a good sign. Sometimes we just simply go sideways in order to work off some of the excess froth that has been part of the market for so long. Ultimately, this is a market that I think you need to look at through the prism of trying to find value if and when it shows up in the form of cheap ounces. Chasing silver is very dangerous to do, just because of the fact that it is an extraordinarily volatile market under the best of circumstances.

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