Silver Price Analysis – Silver Continues to See Grinding Movement

Silver Technical Analysis

Silver has rallied a bit early on Tuesday to pierce the 50-day EMA. Now the question of course is going to be whether or not we can continue to see the market rally from here. After all, silver has been very beaten up over the last several months after being probably the hottest market on the planet.

We do have to worry about interest rates and the 10-year yield in America is hovering around that crucial 4.3% level. But ultimately, I think you have a situation where traders will eventually look to this as a buy on the dip scenario. After all, if peace is going to be a potential thing out there, it should drive down interest rates and that in and of itself should help silver as it is inversely correlated to interest rates.

Technical Resistance and Psychological Barriers

The $80 above is an area that I think a lot of people will be watching very closely, with it being a large, round, psychologically significant number and an area where we have seen a lot of noise previously. It would make a certain amount of sense to see the market react there.

If we can get above the $80 level, I think that’s an extraordinarily bullish sign, probably opening up a move to $90. Short-term pullbacks in the meantime should see support near the $70 level, as it has proven to be important multiple times as well.

And I do think you have to look at this as a market that is trying to sort out whether or not it can pick up momentum. And I think the answer to that lies in the bond market and, of course, the headlines around the world. Keep your position size reasonable. Silver can really hurt an account if traded poorly, so keep that in mind.

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