Is Silver Set for a Relief Rally? Why Sellers Are Waiting Near $60

Silver Technical Analysis

Silver initially pulled back a bit during the early part of the trading session on Wednesday, but we are trying to get back to the $60 level. The $60 level is a large, round, psychologically significant figure. If we can break above there on a daily close, it could open up the possibility of a move to the 200-day EMA, but we’ll just have to wait and see.

Trading the Relief Rally and Exhaustion Signs

Any rally at this point in time that shows signs of exhaustion is probably a reason to get short, and with silver being as weak as it has been, I think it does make a certain amount of sense that we get a little bit of a relief rally to get back to a sense of balance.

That being said, keep in mind that the jobs report comes out on Thursday, and that will obviously skew what happens in the market, especially considering that Friday is essentially closed for the most part, with some limited overseas trading as Americans are about to take a 3-day weekend for the Independence Day holiday.

If we turn around and break down from here, breaking below the $57 level, the market is likely to continue to drift down to the $50 level over the longer term. I don’t like silver at the moment. I do think that a bounce opens up the possibility of getting short at the first signs of trouble. If we can recapture the 200-day EMA, it would change everything, but we are nowhere near that right now.

If you’d like to know more about how to trade gold and silver, please visit our educational area.