Silver Analysis – Multi-Year Highs but Correction Looms

[m_c_jacob]

September has been a remarkable month for Silver, with prices running from the 40 zone all the way to 47.50, marking an impressive 20% gain and printing a new multi-year high.

Just like Gold, the long-term trend remains strongly bullish – no doubts there.
However, also like Gold, the recent rally looks overstretched, and history tells us that sharp corrections often follow such aggressive moves.

Yesterday, after touching above 47, Silver sold off hard and dipped to an intraday low of 45.78. Bulls quickly stepped back in, and overnight the market managed to print new highs around 47.57.

For now, the price remains elevated, but with correction looming, I believe the bearish side will eventually prevail in the short-term.

Technical Perspective:
• Key support to watch: 46.80.
• If this level fails to hold, we could see a stronger sell-off than yesterday’s, with the most appropriate near-term target sitting around 45.00.

As always, the market needs to confirm, but at these elevated levels, caution is warranted for late buyers.