Silver Price Analysis – Silver Continues to React to Rates on Friday

Silver Technical Analysis

The silver market gapped lower to kick off the trading session on Friday and then just fell apart. The market is testing the 50-day EMA at the moment, which, of course, is an indicator that a lot of people pay close attention to. If we were to break down below there, then it opens up the possibility of a drop to the $70 level, which is the bottom of the overall range we have been in.

Quite frankly, silver gets absolutely crushed every time rates spike the way they have during the trading session on Friday, and that, of course, makes it so that falling here doesn’t surprise me. We have been bouncing around in a $20 range for a while, with the $70 level being a bit of a floor.

Key Support and Resistance Levels

If we turn around and break higher, the $90 level is your ceiling, and if we can break above there, then we could really go a lot higher. Right now, though, I think you have to watch the 10-year yield because if it does start to spike again, then silver is going to be in trouble. Just as if it starts rolling over, that could be good for silver, and it goes higher.

All things being equal, this is a lot of sideways action just waiting to happen, but you can see how fragile the rally is at the moment by the reaction that we had early during the session. By all means, be cautious as we head into a weekend which will probably have another deluge of random headlines.

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