- Silver has been launched out of a cannon during the trading session on Friday as we have broken above the crucial $37.50 level, causing a massive, short squeeze.
- The market is above the $39 level. And if you have been listening to me recently, I suggest that if and when we break out, we probably go to the $40 level based on the measured move.
- What I didn't know is that we were going to get most of the way there in just a few hours, but here we are.
At this point in time, I think you'd look at this through the prism of a short-term buy on the dips type of scenario in order to find some type of value and continue with the overall long-term uptrend. The $37.50 level is an area that should now offer pretty significant support as market memory should come into the picture.
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Pay attention to the US dollar. If it starts to fall, that only helps Silver's case. But I think this had been going to happen for some time. You can see that we had been consolidating for a while and just kind of pressured the upside. This has been a massive launch higher. So, what you're more likely than not going to have to do is wait for a pullback on a shorter timeframe chart, perhaps the one hour chart, and a bounce to start following right along.
If we continue to go higher, then I would expect to see a certain amount of trouble at the $40 level, mainly based on psychology more than anything else. Ultimately, this is a market that I think continues to be very bullish, has been bullish for a while. And now the question is, when will gold hit its new all-time high? Or I should say, in that case, a new all-time high, I should point out that this is not the all-time high for silver. But typically, what happens is when one of them breaks out, the other one follows.
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