Silver Price Outlook – Silver Continues to See Support

Silver Technical Analysis

The $50 level is going to be an area that I think a lot of people will watch as it is a large, round, psychologically significant figure. And of course, you can see a lot of headline noise. That being said, the market also looks as if we could either pull back to the 50-day EMA, which would be excellent for value. But we also could see a situation where we just go sideways between $50 on the bottom and $54 on the top. That’s another way to work off some of this excess froth, but the one thing you don’t want to see is silver go exponentially higher from here and jump right back into a parabolic move that’s not healthy.

And quite frankly, the backwardation could signal some issues. Spot prices are higher than futures. So, what that means is that futures traders believe that things will be cheaper eventually, once the mania of people lining up for silver goes away. Unfortunately, that’s a sign that we’re getting closer to the top than not when people start lining up at jewelry stores and coin dealers or gold brokers, things like that, to buy precious metals, people who aren’t traders.

That tells you that the general public has it in their imagination to get rich, and that’s almost always the wrong time. I would love to see some type of pullback in silver, but at the very least, we need to go sideways for a while for me to dip my toe back into this market.

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