Silver Price Analysis – Silver Continues to See Buyers After Plunge

Silver Technical Analysis

The silver market has gapped lower to kick off the week and then plunged from there, but we have turned around to show signs of life since then. And it looks like rate is at least trying to roll over, so that should help silver eventually.

We do have a major floor near the $70 level that will continue to be important, and I do think we’re going to stay above there.

Key Technical Levels and Market Dynamics

But if we turn around and rally from here, the $80 level is an area I’ll be watching very closely. I think it opens up the possibility of a return to the $90 level.

As things stand right now, I think $80 is basically fair value, but keep in mind that this is not a supply and demand question most of the time lately, due to the fact that we’re more worried about interest rates—which, of course, are being driven by whatever’s happening in the Middle East at any given moment.

So, it is a very noisy market that has found itself to be even noisier currently. If we were to break down below the $70 level, then we could send this market down to the $60 level, but I don’t think that happens—at least not unless interest rates in the United States just absolutely skyrocket.

I think right now everybody’s waiting around to see if the Americans will launch another round of attacks or not. The market will continue to be very noisy; it will continue to be very violent based on headlines, so make sure your position size is reasonable.

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