Silver Price Analysis – Silver Continues to See Pressure as it Sits Below $60

Silver Technical Analysis

The silver market did fall initially during the trading session here on Friday, but then found buyers to turn things around. That being said, the market is likely to continue to see the $60 level above with the prism of a resistance barrier. Ultimately, I think this is a market that is currently in trouble, and we’ll have to see whether or not we can continue to fight back and try to get above the $60 level. This would be a victory of sorts for the buyers, perhaps reentering the consolidation area we had been in previously.

The $60 level is a large, round, psychologically significant figure that has been important multiple times in the past. If we break down below the bottom of the candlestick for the last couple of days, then I think we could see silver unwind towards the $50 level. Historically speaking, the $50 level has been extraordinarily important, at least 3 times that I can think of. So, therefore, it would make a certain amount of sense that $50 is a bit of a magnet for price.

Technical Support Levels and Market Outlook

If we can break back above the $60 level, it could kick off a short-term rally, perhaps a little bit of a reversion to the mean. We may even go as high as the 200-day EMA, which is currently at $67.48. After that, you have $70, but I think we would need some type of actual fundamental change. Things right now are just not good for silver, as the US dollar strength remains a major sticking point for silver bulls.

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