Silver Forecast: Golden Cross Forms as $70 Caps the Rally

Silver Technical Analysis

The silver market tried to rally in the beginning part of the Tuesday session, but we found a bit of resistance at the $70 level yet again. Quite frankly, I think part of what’s going on is that traders are getting a little exhausted. It’s been a pretty bullish market as of late, and even gold is starting to pull back a bit. This is a market that has an area above that people will be watching.

The $70 level has been very important for both support and resistance in the past, so a little bit of market memory in this area does make a certain amount of sense. If we could break above the $70 level, then it’s possible that buyers may take control again.

Technical Outlook and Moving Averages

It’s also worth noting that right now the 50-day EMA is trying to break back above the 200-day EMA and kick off the so-called Golden Cross. Ultimately, this is a market that is going to be paying close attention to the interest rate markets, as higher interest rates, generally speaking, work against silver.

And that had been the story for several months until recently. Now, we’re looking at the potential debasement trade for the US dollar. A weakening US dollar could help silver. We’ll just have to wait and see how that plays out over the next few days, as traders catch their breath.

But ultimately, in the short term, it looks like gravity and resistance has taken control of this market. A short-term pullback makes quite a bit of sense. The 200-day EMA, probably an area that a lot of traders will be watching for any potential support that appears via technical traders.

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