Silver Price Analysis – Silver Continues to Search for a New Range

Silver Technical Analysis

The silver market has been very noisy during trading on Friday as we wait for inflation numbers, but we also have to keep in mind that this is a market that recently has seen a very dramatic candlestick form, wiping out a huge amount of the retail population. With that being the case, I believe the $70 level will continue to be very important as a potential floor in the market. This is an area that will attract a lot of attention, from a headline perspective.

The $90 level above is a major resistance barrier and the market is likely to try to figure out what to do with this huge area. It does make a certain amount of sense that perhaps in the short term our consolidation range is pretty wide after that type of move.

Potential for Market Stability

If we were to break down below the $70 level, that could open up a move down to $60, possibly even the 200-day EMA. If we break above $90, that opens up an attack on the $100 level. This would be an area that causes a lot of headline noise.

As things stand right now, I think the most important thing to do is to try to find some type of stability and perhaps the 50-day EMA being here is reason enough for the market to just hang out for a while. I think that is what is needed for any hope of a longer-term continuation to the upside and return to the bullish behavior that we had seen in the past.

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