Silver Price Analysis – Silver Continues to Hover at Same Big Figure

Silver Technical Analysis

The silver market remains a little stagnant during the early hours here on Tuesday as we are hanging around the $80 level. The 50-day EMA is sitting just above there, offering resistance, and therefore, I think that from a technical analysis standpoint, we are a little bit flat. That being said, the stagflation fears that we are seeing out there, with plenty of jobs shrinking, but at the same time inflation going higher, is a little bit of a dampening agent on this market, as the Federal Reserve is likely to keep its interest rates higher for longer.

Consolidation and Outlook

With that being said, I do think that we are just simply in a consolidation phase. I believe that right around $80 is fair value. We have been bouncing around between the $70 level at the bottom and $90 at the top. Ultimately, I think this is a situation where if we do drop from here, I’ll be looking for buying opportunities on some type of short-term bounce.

Keep in mind that silver had recently shot straight up in the air and then collapsed. Now, at the very least, you need people to build confidence in this market. Typically speaking, the silver market is a little less loved than gold, and in the situation that we’re in now, I still think gold outperforms silver, which is more of a historical norm.

If we break down from here and break through the $70 level, then I think that’s an extraordinarily negative sign. I’m not looking for that, but it’s something to keep in the back of your mind. Buying on the dip is possible but I would not get married to a position. I think we have some work to do before we become very bullish.

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