Silver Price Analysis – Silver Continues to Look for Its Range on Wednesday

Silver Technical Analysis

The silver market rallied a bit during the trading session on Wednesday as the jobs report in America came out much hotter than anticipated. This suggests that the Federal Reserve may have to wait a little longer to cut rates, which, ironically, a lot of people would think would work against silver, but it doesn’t seem to be affecting it much.

I think at this point in time, we have settled into some type of $20 range with $70 on the bottom being support and $90 on the top being resistance. If we can break above $90, I think that opens up quite a bit of recovery. This is a market that got way ahead of itself, and a lot of people got wiped out in the process of being a little overexcited.

The Technical Outlook

The 50-day EMA continues to offer support just below the $80 level and now I think the real question will be whether or not we can break above that $90 level. If we do, I think that’s an extraordinarily bullish sign. If we don’t, then I think that just continues more of the sideways action.

It’s difficult to imagine this market just shooting straight up in the air after a couple of Fridays ago we saw 33% losses at one point. That just doesn’t happen. So, with that being the case, I think you have to be a little bit patient, but it still remains more or less a buy on the dip scenario as long as we can stay above $70. The longer we spend time in this consolidation area, the better quite frankly, because we do not want to see impulsive moves after what just happened. That will just lead to more chaos.

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