Silver Price Analysis – Silver Continues to See Pressures Early

Silver Technical Analysis

The silver market has fallen a bit during the trading session here on Tuesday as it now looks as if we are trying to test the $60 level. The $60 level is a pretty significant psychological barrier from what I can see, and I do think that you have a situation where traders are probably going to be very interested in seeing whether or not we can blow through there. This is a level that a lot of headlines will be made if and when it happens.

Key Technical Levels and Market Correlation

If we rally from here, then you have the 200-day EMA at $67.75 as a little bit of a barrier. I am watching for a bounce; it would make a certain amount of sense here, but we’ll just have to see how risk appetite goes. If we break through $60, though, we’re probably heading to $50 at that point. The $50 level being hit would be a big deal and could cause panic from the bulls at that point.

The correlation between lower interest rates and silver rising seems to be breaking down a bit, so do keep that in mind. Ultimately, I think you have to look at this as a market that is doing everything it can to find a bottom. The question at this point in time is whether or not it can. I suspect that this is going to come down to whether or not things deteriorate even further in the Middle East, and any reaction in the interest rate markets.

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