Silver Price Analysis – Silver Continues to Rally as Rates Drift Lower

Silver Technical Analysis

The silver market has rallied a bit during trading on Friday as interest rates have dropped a bit despite the fact that the jobs report in America was just a touch stronger than anticipated. We are starting, I think, to price in the idea that eventually the war in the Middle East ends and then we can start thinking about supply and demand.

Silver has had an undersupply for quite some time, and I think traders will start to focus on that again. If we can break above the high price for the Thursday session, it could open up a move towards $90. However, it’s a bit tricky to think whether or not traders would get aggressive heading into the weekend. I guess we’ll just have to wait and see how this goes.

Supply Dynamics and Technical Range

Short-term pullbacks will look at $80 as a potential support level, followed by the 50-day EMA. I think from a larger standpoint, we’re probably looking at consolidation with $70 being your floor and $90 being your ceiling or something close to it.

Ultimately, this is a very volatile market, and it will move based on the latest headlines, which, of course, have been driving interest rate markets, and that is a big problem. So, the only way as a trader to deal with that is to cut your position size down. I do think eventually we will settle into this range at least for the time being, but again, some random tweets heading into the weekend could send this thing flying in either direction.

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