Silver's Next Target: $106 | Chris Vermeulen

Key Concepts

• Silver Price Surge: Rapid increase in silver prices, driven by demand and technical factors.
• Fibonacci Extensions: Technical analysis tool used to project potential price targets based on prior price movements. Specifically, the 61.8% and 100% extensions are highlighted.
• FOMO (Fear Of Missing Out): Psychological phenomenon driving late investors into the market, potentially exacerbating price movements.
• Volatility & Margin Calls: Increased price swings in silver leading to higher margin requirements from exchanges.
• Parabolic Moves: Rapid, unsustainable price increases often followed by significant corrections.
• Rebalancing Portfolios: Adjusting investment allocations to maintain desired risk levels, often involving profit-taking.
• Technical Analysis: Method of evaluating investments by analyzing past market data, primarily price and volume.
• Bull Market: A period of sustained price increases in a financial market.

Soaring Silver Prices & Market Outlook – January 15th, 2026

Introduction & Miles Franklin Specials

Kaiser Johnson of Liberty and Finance introduces the weekly specials from Miles Franklin, running from January 12th to January 19th, 2026. 1oz Silver American Eagles are available for $8.80 over spot price, and 1oz Gold Eagles for $185 over spot. The contact number for orders is 1-888-881-Liberty (1-888-154-237), with availability after hours and on weekends.

Silver’s Explosive Growth & Technical Analysis

Elijah K. Johnson welcomes Chris Formulan from technicaltraders.com to discuss the significant surge in silver prices. Formulan notes that silver has been experiencing a long-awaited breakout, particularly in 2025 and 2026, with increasing volume and participation from diverse investors – even at locations like post offices and Costco.

Formulan emphasizes the use of Fibonacci extensions as a key tool for identifying potential price targets. Analyzing the daily silver chart, he identifies two key resistance levels:

• 61.8% Fibonacci Extension (Golden Ratio): A level where silver has recently experienced volatility, including a sharp pop and subsequent pullback on January 15th. Successfully navigating this level suggests a strong likelihood of reaching the next target.
• 100% Fibonacci Extension: Projected at $106.25, representing a potential 16% gain from the current price, achievable within a few trading sessions given the current momentum.

Long-Term Considerations & Volatility

While bullish in the short term, Formulan cautions about potential warning signs in the longer-term silver chart. He expresses concern over the parabolic nature of the recent price increase, suggesting it indicates a crowded trade where buyers are chasing prices. He believes silver has broken through the $45-$50 per ounce level and is likely to remain above it.

The recent volatility in silver is attributed to margin calls and increased margin requirements imposed by exchanges to mitigate risk as the price rises. A 15% intraday price swing was observed on January 15th, highlighting the increased risk.

Profit-Taking & Market Sentiment

Johnson notes an increase in silver selling activity at Miles Franklin, with customers taking profits. Formulan agrees this is a smart move, especially given the potential for a 15% short-term gain. He suggests he is also considering trimming his own silver position. He attributes this selling to portfolio rebalancing, as the rapid increase in silver’s value has led to overweighting in precious metals. He believes this selling pressure is actually a bullish sign, potentially attracting buyers who missed the initial rally.

Historical Context & Potential Corrections

The discussion references historical silver sell-offs in 1980 and 2011, which resulted in decades-long periods before prices recovered to previous highs. Formulan suggests a consolidation period is more likely than a repeat of those dramatic declines, with $50 acting as a potential floor. However, he acknowledges a potential 50-70% pullback if silver reaches $106, bringing the price down to around $45 per ounce. Gold, he believes, could see a 25-35% correction in a similar scenario.

Formulan’s Trading Strategy & Key Quote

Formulan emphasizes the importance of having an exit plan and managing risk. He advocates for actively managing positions, taking profits when targets are reached, and being prepared to step aside if the market shows signs of topping.

Key Quote: "Nobody knows where it's going. And so we just have to follow these trends. Let the targets get hit. Let the price chop around and build a formation. And if it's a bullish formation, we hold tight. If it breaks down, it's a bearish pattern, I like to move aside."

He prioritizes buying back assets when they demonstrate a new upward trend, even if it means paying a premium. He stresses the cost of time lost in waiting for prolonged rallies.

Other Asset Classes & Future Outlook

Formulan remains bullish on equities in the short term, expecting the S&P 500 to continue its upward trend for another 3-4%. He also highlights the strength of gold, platinum, and palladium.

• Gold: His preferred metal due to its stability and accuracy as a barometer of fear. He projects a target of $5170-$5200, representing a 12% gain.
• Platinum: Identifies a strong chart pattern suggesting a potential 20-27% upside to $360-60.
• Palladium: Acknowledges its strength but expresses less enthusiasm due to a choppier chart.

He suggests that when the current bull market in equities and precious metals ends, cash (specifically US dollars) may become an attractive safe haven.

Resources & Conclusion

Viewers are directed to technicaltraders.com and the Technical Traders YouTube channel for daily market analysis, trade signals, and portfolio tracking.

Synthesis:

The discussion paints a bullish, yet cautious, picture of the silver market. While a significant price increase to $106 is anticipated in the short term, driven by FOMO and technical factors, investors are advised to be prepared for a potential consolidation period and to actively manage their positions by taking profits and having a clear exit strategy. Formulan’s emphasis on technical analysis, risk management, and adaptability provides a framework for navigating the volatile precious metals market and identifying opportunities in other asset classes.