Silver Price Analysis – Silver Continues to Hover at 80 US Area

Silver Technical Analysis

Silver had tried to rally early during the Asian session, but in a pattern that we continue to see, it’s as if Europe has no interest in it and North America follows suit as well. It’s purely an Asian phenomenon at the moment, which culturally speaking I suppose makes sense, as typically Asians are more interested in precious metals than Westerners.

Searching for Equilibrium

At this point, it also suggests that maybe the silver market is normalizing a bit as we go back to those old standbys in the market where people just assume certain things. We are hovering around the $80 level, which is an area that’s much higher than where we started and now, I think we’re in the process of trying to figure out exactly what the fair value of Silver is.

And the more this goes on, the more likely it’ll be somewhere near $80. We had been consolidating and we did try to break out about 5 or 6 sessions ago, but we’ve been crushed since then. That being said, you have to keep an eye on the $80 level because that and the 50-day EMA both seem to be offering support and that’s something worth noticing as well.

Underneath there, we have the $70 level which, of course, is a psychologically significant figure and an area that’s offered support previously. That’s probably the floor at the moment. This is a market that’s looking for momentum. Right now, it’s just not finding it. A short-term back-and-forth trading might be possible, but it definitely is looking heavier by the session, although I don’t expect a massive breakdown. I think we’re just blindly searching for equilibrium at the moment.

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