Silver Price Outlook – Silver Continues to See Volatility on Wednesday

Silver Technical Analysis

The silver market has been very choppy during the trading session here on Wednesday so far, as we are staring down the barrel of the crucial $60 handle. The $60 level, of course, will have a lot of psychology attached to it. In and of itself, there’s no real market memory there or anything to worry about. We’ve never been there. But if we break above $60, that really opens up the floodgates to even further upward trajectory.

Potential Support Zones Technical Analysis

I think at this point, you are probably getting to one or two conclusions. Either we continue to just rip forever to the upside, or we need to spend some sideways action here to burn off some of these gains. Pullbacks probably happen, but I think they’ll probably get bought into at least for the time being. I’m looking at the $55 level as a potential support level. I do think that is an area that people would look at due to the psychology of it, but also, it does extend down to about $54, and I think that $54 level previously had attracted a lot of attention.

The market has just come too far too quickly and you just don’t want to see this continue because typically what happens in a move like this, if it does extend even further, when it does pull back, it’ll pull back like 50%, but that might be $15 before it’s all said and done, which in the silver market is huge. Sideways action, maybe even a pullback towards $55, is exactly what I would like to see to get involved. If we break $60, we’re just in no man’s land, kind of like we are now.

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