Silver Technical Analysis
The silver market has rallied yet again during the trading session on Wednesday as we continue to see this parabolic move stretch out even further, touching roughly $72.50 during the session.
We have pulled back just a little bit since then, but this is still a market that is clearly one that you cannot short. The $70 level should now offer support, and despite the fact that things are so parabolic, there are absolutely no signs of gravity coming back into the picture.
Market Outlook
This, of course, is going to end up pulling back quite viciously and probably wipe out a lot of people’s accounts. But it still is a market that would probably have to lose $20 or so before you start to have a serious conversation about whether or not you should start shorting. To put things in context, it was just a couple of years ago that silver was only worth $20.
With that being said, momentum is the only thing that you can count on here, and short-term pullbacks should offer buying opportunities. But you want to get in on the right-hand side of the V once it appears on the chart. You do not want to anticipate that, say, $70 will hold just because it’s $70. Silver does have the ability to rip in both directions, and one would think that sooner or later, there might be a little bit of a pullback just due to holiday trading and people taking profits home after gaining so much in the marketplace. That being said, that probably also ends up being a bit of an opportunity.
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