Silver Price Outlook – Silver Continues to See Support on Friday

Silver Technical Analysis

Silver has rallied during the early hours on Friday as we continue to see a lot of consolidation, but we are giving back some of the gains. And I think this is indicative of a market that just got too far ahead of itself. For me, it’s obvious that the $60 level is going to be a barrier. And with that in mind, I think you have to pay close attention to any time we get close to it. This is because if we do break $60 and go higher, that is an extraordinarily bullish sign. If we pulled back from here, the $55 level is the beginning of support extending down to the $54 level.

All in all, I suspect this is a market that is trying to find its footing on any dips, and plenty of value hunters will probably be out there trying to get involved. Silver is starting to suffer from a lack of supply, although that’s been the case for years. The idea now, I think, is that artificial intelligence and green technology is finally being adopted enough that it’s going to demand more physical silver.

But at the end of the day, part of this also has to do with the simple fact that there are more ounces of silver in futures markets on paper than there are in real life in the exchanges. That’s been the case for years. So, a short-term pullback, I think, has people looking to take advantage of what’s been a very explosive move. While I don’t like chasing this market, you clearly cannot get short of silver anytime soon. In fact, as a general rule of thumb, you’d have to be at the very least below the 50-day EMA, and the $50 level sits just below there. So that might get me interested in going short, and don’t get me wrong, someday there’s going to be a beautiful shorting opportunity in this market. It’s just that we don’t want to do it right now.

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