Silver Price Analysis – Silver Attempting to Find its Range Still

Silver Technical Analysis

The silver market has gone back and forth during the trading session on Tuesday, as we are hanging around just above the 80-dollar level. Furthermore, we also have the 50-day EMA sitting just below, offering a certain amount of support.

If we were to break down below there, then I think it opens up the possibility of dropping down to the 70-dollar level. The 70-dollar level is a major area of support that has been important for several weeks now, so we’ll wait to see whether or not that holds.

Trading Range and Market Momentum

If we break to the upside, then you have to watch the 90 dollars level which has been a bit of a barrier in and of itself. In fact, I’m starting to think that perhaps what we’re looking at here is a potential 20 dollar range. That would be healthy.

The market is still going to have to deal with the trauma from a couple of Fridays ago when it got absolutely crushed. You’ll see if you look at the chart that we are towards the bottom of that candlestick. That tells you how much damage has been done.

We’ve tried to rally but failed a couple of times. I think the bullish move here would be to stay in a range for quite some time and absorb all of that momentum that just got slammed into the market. This of course is a market that was on the forefront of everyone’s minds, and as a result, there are a lot of people who are out there hoping for a bounce, or they will be stuck for years, as we have seen a couple of times over the last several decades.

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