Silver Weekly Price Analysis – Can Silver Recapture $100?

Silver Markets Weekly Technical Analysis

The silver market has rallied significantly during the course of the week to break well above the $90 level, and it now looks like we are going to try to go looking to the $100 level.

The $90 level is an area that I think will offer short-term support. But even if we break down below there I think there’s plenty of buyers at $80 as well.

Geopolitical Supply Concerns

We have a new wrinkle in the situation now as Mexico erupts in violence. There are some questions as to whether or not silver production continues. Mexico is the world’s number 1 exporter of silver, and that of course has an influence here.

To the upside, I think the $100 level makes a perfectly fine target. It makes a lot of sense, there’s a lot of psychology attached to that, there’s a lot of headline noise. Generally speaking, markets try to get to these big numbers.

If we can break above the $100 level then we could go more parabolic again, but I don’t want to see that. I think short-term pullbacks are buying opportunities waiting to happen with short-term charts being your main focus.

Overall, we’re still very much in an uptrend and that hasn’t changed. And what I do find particularly interesting is even after that horrific Friday candlestick all those handful of weeks ago, the market has been resilient. It’s pretty rare you see a market drop 30% in a day and just sit there. It’s almost unheard of, so that tells me there’s still plenty of demand.

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