Silver Weekly Price Outlook – Silver Rises, But Will It Consolidate?

Silver Markets Weekly Technical Analysis

Silver has another bullish week. The silver market has rallied pretty significantly during the past week and has even broken above the $80 level yet again. That being said, it looks like we are struggling to stay above there, and I think in this environment, maybe we go sideways for a minute.

That’s perfectly fine because you can only go parabolic to the upside for so long before gravity comes back. After a move like this, you really only have one of two options. You either see a significant pullback, which could be as much as $30, or you see sideways action for a while. Basically, the market needs to go to sleep.

Market Consolidation Expectations

I suspect we are looking more and more like a sideways market trading between the $70 level on the bottom and the $80 on the top, maybe as high as $82. If we do break out to the upside, I think that means we’re probably going to try to get to $100 an ounce eventually.

Right now, I think the real question isn’t so much whether or not we go that far, but where is the bottom when we finally do settle down from all of this? Obviously, it is probably going to be a bit more to the upside than it had been in the past, as at one point, and it really wasn’t that long ago, you could get $12 an ounce.

Where the bottom is, we’ll have to discover over time, but right now, I think the only thing that you can look at is the fact that this is a bullish market, and if it dips, you are looking to take advantage of cheap silver. Again, I think $100 an ounce is possible at this point. Really at this point, almost anything’s possible because we are in unexplored territory, but I also recognize that the most obvious situation here is going to be more consolidation in the meantime.

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