Silver Weekly Price Outlook – Silver Has Another Explosive Week

Silver Markets Weekly Technical Analysis

Silver now finds itself very parabolic as it is reaching the $65 level at the moment. Of course, this is a large, round, psychologically significant figure, but we have now left the throes of gravity. Again, silver is in the midst of a short squeeze, but it is difficult to reconcile the fact that volume is still lower than it once was.

That being said, you clearly cannot short this market, and it probably has further to go to the upside. However, there will be the occasional vicious pullback, and traders need to be careful with that due to the potential of a $3 drop just out of the blue. We have seen that multiple times on the daily charts, where somebody will push the market higher and then start selling off again.

Key Support Levels and Pullback Risk

Short-term pullbacks to the $60 level could end up being buying opportunities, possibly even $62. A breakdown below the $60 level opens up the possibility of a move to $55, where support would be found as well. Regardless, this is a one-way trade, and it is impossible to short this market.

Eventually, someday, shorting silver will be a massive trade to take advantage of, but that is not the case at the moment. There is a lot of hype about a lack of supply, but that is something that has been discussed for 25 years, making it a bit odd that it suddenly matters now.

There is fear of a lack of supply in the silver market due to AI, but on the other hand, there are also reports that AI data centers are not really a thing and that many are being canceled. In the city where this is being recorded, there are at least two data centers with major companies that have been delayed. For now, the market remains impulsive and parabolic, which means traders need to be very careful and focus on value, especially when conditions are extended.

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