Silver Price Outlook – Silver Sees Volatile Week

Silver Markets Weekly Technical Analysis

Silver has been all over the place this past week, and you have to keep in mind that on Thursday, the market was closed. That just shows how much wild volatility there is. I have one of two more likely than not scenarios getting ready to play out here.

Sideways action, a little bit of consolidation would definitely help. You can’t have the market going straight up in the air and ignoring gravity forever. The other possibility is we break down below $70.00 and pull back perhaps as low as $60.00.

Parabolic Movement and Risk

I know that sounds pretty brutal, but when you look at the chart, it’s not a huge move, all things considered. I suppose it’s possible that we could continue to go parabolic, but that is a really bad sign because when things go parabolic like this, when they correct, it will wipe out retail traders.

Silver could go to $100.00 and then pull back $30.00 to be basically where we are at now, and it would destroy everybody’s account because of the leverage involved and the chasing and FOMO trading that would undoubtedly be part of that.

Quite frankly, I think a lot of people probably have already been blown out from the drop that we had seen over the last week or so. Silver is a very dangerous market, but it is one that runs on a lot of directional momentum. Therefore, I like the idea of buying dips as they occur, but if we don’t get that, then you just have to recognize that sideways action for several weeks might be the cure as well.

For a look at all of today’s economic events, check out our economic calendar.