Silver Price Analysis – Silver Continues to See Choppiness on Tuesday

Silver Technical Analysis

The silver market has been very noisy on Tuesday in the early hours as we broke above the 50-day EMA to test the $80 level. But since then, we’ve seen an attack on an Iranian port, which of course the Iranians are not happy about, and it could derail the talks. This is a situation where I think it’s very difficult to get overly aggressive one way or the other with silver, mainly due to the fact that we don’t really know what the next headline is.

Technical Analysis and Support Levels

When you look at the market, you can make an argument that we are trading between $70 and $90, and I think ultimately this is a market that probably doesn’t really move much as far as large distances. I think short-term pullbacks offer buying opportunities, but that’s about it, nothing monumental or longer-term.

The 200-day EMA being broken to the downside would be rather monumental, but I’m not really thinking that’s going to happen. I do think $70 will be held as support. I think 80 continues to be resistance, and if we can break above there, then we might challenge 90, but it will take some time to get there I think.

I think we’re just stuck in this area, and a lot of sideways short-term back and forth trading will be the attitude here. In fact, it’s pretty much been the way since February with the range only narrowing. At this point, it’s a very neutral market with the potential to see dangerous and explosive moves.

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