Silver Price Analysis – Silver Continues to Dance Just Below a Previous Support Level

Silver Technical Analysis

The $60 level is an area that I think a lot of people have been watching for some time, and as a result, you have to look at this area as a potential barrier or perhaps a potential liquidity grab underneath the bottom of a larger consolidation area. Ultimately, I think this is going to come down possibly to the US dollar and how it behaves. Silver tends to be very sensitive to the US dollar in general, so make sure you pay attention to it overall, as well as interest rate moves.

On a Break Lower

If we were to break down below the $55.50 level, then I think it opens up a move to the $50 level. You’ll probably see the US dollar pick up against most things, not just silver. On the other hand, if we break to the upside and can close above the $60 level, we may make a run towards $65, which I think would be a scenario that makes a bit of sense, as we have tried to at least find some stability.

I’m not really willing to put a lot of money into the silver market, but I recognize that it is a little oversold, so it might make for a decent kind of “smash and grab” trade if you will. Long-term, it is still somewhat up in the air, but the silver market is a place that you have to be careful in, as it can be so volatile and dangerous at times.

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