Silver Price Analysis – Silver Continues to Recover on Wednesday

Silver has broken above the $90 level during early trading on Wednesday and looks like it wants to test the $100 level eventually.

Silver

Silver daily candlestick chart. Source: TradingView.

Silver continues to rally. It has broken above the $90 level during early trading on Wednesday as we continue to see the attempted recovery pick up a little bit of steam. At this point, it does look like we are going to try to retest the $100 level eventually. When we get there, I think we will probably have a huge battle on our hands because that type of sell‑off that we saw last Friday does not happen in a vacuum.

Nonetheless, you have to appreciate the persistence of the bulls and the fact that it is a continuation of an upward trend anyway. Given enough time, I would anticipate that we probably do make a little bit bigger move to the upside. As things stand right now, we are up about 9%.

Short‑Term Pullbacks and Market Dynamics

I don’t love it, but it is what it is. I would prefer more of a stable grind to the upside, but we will have to wait and see how that plays out. With this being the case, I think short‑term pullbacks continue to be buying opportunities as long as we can stay above the crucial 50‑day EMA.

Keep in mind there is a shortage of silver around the world and really at this point in time, I think that is the main story. Although the spread between the United States, North America, and Asia is huge, the reality is both places need silver and there isn’t enough out there. Until we give up the 50‑day EMA, the trend is still very much intact. You just don’t like to see corrections like this because it can lead to further disastrous selling. By all means, if you want to trade in the market that’s fine, but you have to do so with a small position.