Silver Price Outlook – Silver Continues to See Volatility

Silver Technical Analysis

The silver market has gone back and forth during the trading session here on Tuesday, as we continue to bounce around the $50 level by breaking to the upside at one point above $52 and falling below 49. So, this tells me that the market is certainly running out of confidence. I think there are going to be some questions here about whether or not this can keep up. I think the answer, of course, is I don’t think it can.

I think this market desperately needs some type of correction. And we are seeing a massive battle between the silver futures markets and the spot markets, because quite frankly, the spot market has been higher than futures for a while. And in fact, as I look, the spot market is about $1.50 higher. This is because there’s demand for physical metals out there at the moment.

The backwardation in the futures contract does suggest that eventually we are going to fall given enough time. I’m starting to hear a lot of things. Quite frankly, almost everything on my newsfeed is about silver, which tells me we’re getting close to the end here. Gold is a little bit different situation. You can make an argument for gold for multiple reasons. At this point, it’s just about a silver short squeeze, which although we’ve seen quite a bit of volatility and a huge push higher, we’ve also seen it push right back down. I think we’re getting to a very dangerous point on this chart.

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