- Short-term pullbacks offer buying opportunities, and so far, the $70 level does look like it is offering a bit of support.
- The silver market has gone back and forth during the trading session here on Wednesday in what would have been somewhat thin trading, as it was Christmas Eve.
- Most traders are probably away from their desks, and we have Christmas coming up on Thursday, so the markets will be shut down. Friday will be shortened, so I think a lot is going on here.
The first thing is that the market is far too overbought. Unfortunately, I could have said that two weeks ago, so here we are. With that being said, we broke above the $70 level and now we are chopping around trying to figure out what to do next.
Top Regulated Brokers
Technical Outlook and Support Levels
Short-term pullbacks, I do think, offer buying opportunities, and so far, the $70 level does look like it is offering a bit of support. Whether or not that remains to be supportive we will have to wait and see, but I do think that the one thing that you can take away from this chart pretty quickly is that you just simply cannot short silver in this type of environment.
If we do break down from here, then we really do not change the trend at the very least until we break down below the $55 level, which is wild to think about, considering just how high we are in the air at the moment.
All things being equal, this is a market that will get the occasional violent pullback in this type of parabolic move, but those, at least in theory, should be buying opportunities. The way that I will do it is I will buy the right-hand side of the V once it prints, meaning a pullback and then a bounce. Once the momentum turns around to go to the upside, I am a buyer.
Ready to trade our daily forex analysis? Here are the best Silver trading platforms to choose from.