Silver Price Analysis – Silver Bounces off 50-Day EMA as US Yields Tumble

The silver market has bounced early on Wednesday, as interest rates in the US have dropped in early trading.

Silver

The silver market has bounced a little bit after initially dipping on Wednesday as rates have taken a little bit of a tumble in America. That, of course, will help silver most of the time, but we also have the 50-day EMA coming into the picture, and technical traders are, more likely than not, watching this.

The support level that we have found to turn around from was a swing high in the early part of July. So, the question now is, will the silver market make a big bullish flag here that it tries to take off from? It’s hard to tell, but if it did, the next big resistance barrier that I see on the chart is the $70 level. It’s more or less a psychological barrier, but it’s also a swing high going back to the middle of June.

Silver daily chart shows price rebounding near moving-average support with $70 as the next major resistance area. Source: TradingView.

Technical Resistance and External Geopolitical Drivers

Overall, silver is a market that is typically volatile, so it’s not a huge surprise to see a lot of the choppiness. And now it appears that it is at least trying to save itself after that big sell-off.

But there are a lot of external factors at the moment that could come into play, not the least of which would be the Strait of Hormuz and whether or not it’s ever going to open up. The demand for silver is still strong going into the future, assuming that electrification is still a thing, and it seems to still be a thing.

Longer-Term, I Do Like Silver

So therefore, longer-term, I do like silver, but we are still in the midst of fighting a lot of external noise for clarity at the moment.