Silver Price Analysis – Silver Continues to Attempt to Build a Range

Silver Technical Analysis

The silver market continues to be fairly noisy, but I think at this point it’s pretty obvious that we have a scenario where we are just trying to sort out whether or not the $70 level can remain viable.

The $70 level of the course has been significant support more than once, and therefore, I think it makes a certain amount of sense that there’s market memory there that people will be willing to pay attention to. If we were to break down below the $70 level, I then begin to pay a little bit more attention to the 200-day EMA.

To the upside, we have the 50-day EMA right around $77.80. A move above there then opens up a much bigger move.

Consolidation and Boundaries

That could have traders looking to re-establish the consolidation area between $70 on the bottom and $90 on the top, which is actually what I expect eventually. That’s the catch, though. We do have to keep in mind that there are a lot of questions out there about geopolitical issues, and of course, the interest rate markets, which have been elevated, which does work against silver.

But it has remained fairly resilient here recently and that tells me that traders may be shifting from rates back to supply and demand questions. That, of course, would be bullish for silver. We’ll just have to see how that plays out.

I do think that wherever we do settle, as far as a range is concerned, it won’t be as low as it once was, just a year ago. So, I am looking for a more elevated market in general, but we have to figure out where the boundaries are.

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