Silver Price Analysis – Silver Continues to Hang Around the 200 Day EMA

Silver Technical Analysis

The silver market continues to see a lot of noise during the trading session on Tuesday as we are currently hanging around the 200-day EMA. This is an indicator that a lot of longer-term traders will be paying close attention to, and it does suggest that we are trying to find some kind of floor. The $70 level underneath has been a major floor for a while, and the fact that we are sitting right on top of the 200-day EMA suggests that we are entering a phase of trying to find value.

Interest Rates and Technical Outlook

A lot of this comes down to the interest rate market in America and government bond yields. As yields rise, it tends to work against silver, but if interest rates continue to drift lower, that could give silver a bit of a relief rally. To the upside, the $80 level is acting as a major resistance barrier, and if we can break above there, then it opens up the possibility of a move to the $90 level.

Given enough time, I think value hunters will look at this through the prism of a buying opportunity, but you need to be cautious with your position size as silver can be extraordinarily volatile. If we break down below the 200-day EMA, then the market could go looking for the $65 level, but ultimately, I think support holds for now, but the longer-term outlook for this market is one that I think is very bullish indeed. At this point, I am looking for momentum to finally jump back in as the longer-term outlook for silver is so strong.

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